CGF Articles & Editorials
By Terrance M. Booysen and reviewed by Osborne Molatudi (Partner: Hogan Lovells)
On a worldwide basis, criminal activity in the workplace -- detected or undetected -- is at an all-time high. Fraud, corruption and other forms of economic crimes are rife, and perceptions of increasing illicit behaviour are backed by reputable subject matter experts and research agencies, with alarming statistics. Research conducted by the Association of Certified Fraud Examiners (ACFE) show that workplace fraud has steadily increased between 2012 and 2016. In 2012, case studies showed that the median loss caused by workplace related occupational fraud was US$140,000. But by 2016, figures showed that the median loss caused by such cases had increased to US$150,000.
By Terrance M. Booysen and peer reviewed by David Loxton (Partner: Dentons)
With South Africa already on precarious ground as a result of its alleged ‘state capture’; not least also the effects of South Africa being downgraded to “junk-status” by Standard and Poors and Fitch rating agencies, it was in the nick of time that President Jacob Zuma signed the Financial Intelligence Centre Amendment Act 1 of 2017 (‘the Amendment Act’) into law on 28 April 2017.
By Terrance M. Booysen and reviewed by Bulelwa Mabasa (Werksmans: Partner)
In his State of the Nation Address in 2017, President Jacob Zuma noted the intention of the South African government to influence the behaviour of the private sector and to drive economic transformation. He stated that this objective would be achieved through the government playing a role in the economy through legislation, regulations, licensing, budget and procurement, as well as Broad-Based Black Economic Empowerment (‘B-BBEE’) imperatives.
It is reported that Benjamin Franklin (1706-1790) -- being one of the people who drafted the Declaration of Independence, including the Constitution of the United States of America -- once said; “If you want something done, give it to a busy person.” Indeed, this axiom is entirely fitting in respect of South Africa’s very own Professor Michael Mervyn Katz. Professor Katz is renowned for his illustrious career which spans a period of almost 50 years, where he specialises in corporate and commercial law.
As its longest serving Corporate Patron, Rifle-Shot Performance Holdings (Pty) Ltd (‘Rifle-Shot’) has supported CGF Research Institute (Pty) Ltd (‘CGF’) since 2011. The business relationship has grown steadily through the years, and both companies have enjoyed the benefits of exchanging business ideas and enhancing their respective brands and market offerings.
By Dr Dicky Els and Terrance M. Booysen
It is imperative that the impact of work-related stress and the negative impact of distress be incorporated into the organisation’s enterprise-wide risk management framework. A Bloomberg study conducted in 2013 revealed that South Africa is the second-most ‘stressed’ country out of a study of 74 countries.
By Jené Palmer and reviewed by Terrance M. Booysen
We know that both local and international organisations are continuously having to adapt to operate in uncertain business environments. Locally, the release of the Preferential Procurement Regulations 2017, which places stronger emphasis on ‘radical transformation’, against the backdrop of persisting low economic growth rates are only some of the elements giving rise to further uncertainty.
By Terrance M. Booysen and reviewed by Andrew Johnston (Director: Corporate Services - Sun International)
As Sir Winston Church famously once said, “There comes into the life of every man a task for which he and he alone is uniquely suited. What a shame if that moment finds him either unwilling or unprepared for that which would become his finest hour.” Undeniably, this axiom would apply when new directors are not properly inducted within the context of their new board environment and the affairs of the organisation.
By Terrance M. Booysen, Lucien Caron and Robert Davies
There is no doubt that directors in South Africa are being scrutinised for their role within organisations ̴ and far more than in previous times. Board and executive decision-making is being challenged in parliament and in court and, at the very least, some directors have suffered significant reputational damage for not being seen to have properly and diligently fulfilled their fiduciary duties.
By Lucien Caron and reviewed by Terrance M. Booysen
Increasingly, large and small organisations are under mounting pressure to manage regulatory compliance and their associated risks more effectively. Greater attention thus needs to be given to the organisation’s risk appetite and its risk mitigation, both at the enterprise and service-line levels.