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CORPORATE GOVERNANCE

Good corporate governance is paramount to the success of the SABS, and to protect and advance the interests of the country and its citizenry.

The SABS exists as a public entity in terms of the Standards Act, No. 8 of 2008 (the “Act”), under the Executive Authority of the Minister of Trade, Industry and Competition (the dtic). In accordance with the Act, the Board of the SABS is appointed by the Executive Authority (i.e., the Minister of the dtic). The Act also makes provision for the appointment of the Chief Executive Officer of the SABS. In order to achieve its objectives, the SABS may perform, in so far as it is not inconsistent with the provisions of any Act of Parliament or regulation, such functions as the Minister may assign to the SABS. The SABS Commercial SOC Limited is a wholly owned subsidiary of the SABS which houses the SABS's conformity assessment services business.

Accounting Authority

In June 2018 the then Minister placed the SABS under the control of administrators. The Minister designated three co- administrators as the Accounting Authority of the SABS for the period 2 July 2018 to 31 January 2019. This period was subsequently extended to 31 October 2019 and then extended until the appointment of a board. The co-administrators were charged with producing a diagnostic report and turnaround action plan for the SABS. Following the resignation of Mr. Garth Strachan, Ms. Jodi Scholtz was appointed as the Lead-Administrator.

Until such time as the appointment of a new board, the co-administrators have taken responsibility to provide effective oversight and stewardship in line with leading governance practices, ensuring that the SABS delivers on its fiduciary duties, is transparent and accountable and delivers on its legal and statutory mandate and provide regular reports to the dtic on progress made with the turnaround strategy.

The co-administrators also established an Interim Audit and Risk Committee (ARC) to undertake the necessary audit functions as set out in the law. In addition, a Social and Ethics Committee, which met for the first time after year-end, was established. It is envisaged that all other Board committees will be established once a Board has been appointed. The composition of the Accounting Authority reflects the appropriate mix of knowledge, skills, experience, diversity, and independence to execute its roles and responsibilities.

Interim Audit and Risk Committee

At year-end, the Interim Audit and Risk Committee comprised of two co-opted independent non-executive members, one non-executive member and the Lead Administrator. All members have the requisite financial skills and experience to fulfil the Committee’s duties. The Committee’s mandate is, amongst others, to review the effectiveness of internal controls, ensure satisfactory standards of governance and compliance, and maintain oversight of financial results and integrated reporting.