Governance
National Executive Committee (NEC) oversight
sub-committees
Legal and compliance
The legal and compliance office of SALGA has
been established and functions optimally.
Among the core functions of the unit are to:
•
•
•
•
•
Review,
implement
and
monitor
processes for SALGA, aimed at ensuring
effective management of legal disputes;
Minimise, mitigate and manage legal
disputes and related costs;
Provide guidance and co-ordination
in respect of initiation or defence of
litigation;
Ensure effective corporate governance
and a compliant and ethical internal
environment; and
Ensure compliance with the Public
Finance Management Act (PFMA),
Treasury Regulations, King code on
corporate practices, National Treasury
Risk Management Framework (NTRMF)
and any other.
Risk management
Utilising the enterprise risk management process
to manage and mitigate business risk, SALGA
has deployed a risk management strategy,
supported by a risk management policy, anti-
fraud and corruption policy and a fraud hotline.
To facilitate and coordinate the implementation
of the strategy and policy, a risk management
committee has been established comprising two
executive directors and two provincial executives.
The risk management committee meets
quarterly. Reporting to the audit committee, the
responsibility of the risk management committee
is to oversee risk management activities, which
include anti-fraud and corruption, and to advise
on the effectiveness of the system and process of
risk management.
A strategic organisational risk register has been
developed and major risks that affect the entire
organisation have been identified. In addition,
risk registers for business units were also
developed. The risks were analysed and suitable
action plans implemented to ensure the risks are
mitigated to a suitable tolerance level that can be
sustained by the organisation.
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As the Accounting Authority of SALGA, the
NEC subscribes to good governance principles
as espoused in the King code on corporate
governance (King IV). Accordingly, internal
oversight structures have been established.
These include the (i) audit and risk committee
and (ii) the performance management and
remuneration committee.
Members of NEC sub-committees not in the
employ of the state, such as members of the audit
and risk and the performance and remuneration
committees, are reimbursed on an hourly basis
according to professional fee schedules.
These committees are comprised of independent
members who are charged with oversight
responsibilities on governance matters.
Audit and Risk Committee
SALGA’s audit and risk committee is constituted
in terms of section 77(a) of the Public Finance
Management Act (PFMA), as well as per
regulation 27.1.1 and 27.1.4 of the PFMA Treasury
Regulations (2005).
The NEC reconstituted the audit and risk
committee with effect from 1 April 2016.
The audit committee was constituted as follows
for the year under review:
#
1.
2.
3.
4.
5.
Name of member
Mr Andrew Mashifane
Mr Nala Mhlongo
Ms Nosisa Kekana
Mr Zukisani Samsam
Ms Rosetta Xaba
Role
Chairperson
Member
Member
Member
Member
Remuneration of Audit and Risk Committee
The disclosure of remuneration paid to members
of the audit and risk committee for the year under
review and prior year is disclosed under note 33
to the annual financial statements.
SALGA ANNUAL REPORT
2016/17