Overview: South Africa has introduced a significant legislative amendment by inserting Section 34A into the Prevention and Combating of Corrupt Activities Act, 2004. This amendment targets members of the private sector and incorporated state-owned entities, aiming to prevent corrupt activities.
Offence and Prohibition: Under Section 34A, any member of the private sector or an incorporated state-owned entity commits an offence if a person associated with them gives, agrees, or offers to give any gratification prohibited in terms of Chapter 2. The intent behind such gratification is to obtain or retain either:
· Business for the member of the private sector or the incorporated state-owned entity.
· An advantage in the conduct of business for the same member or entity.
Association Criteria: For the purposes of Section 34A(1), a person is considered associated with a member of the private sector or an incorporated state-owned entity if they perform services for or on behalf of that member or entity. The capacity in which they provide these services is irrelevant, as long as they are associated.
However, no offence is committed if the member of the private sector or the incorporated state-owned entity had adequate procedures in place to prevent persons associated with them from engaging in such prohibited gratification.
At Corporate Insights our suite of Solutions ensure you have the procedures in place to meet the legislative criteria and ensure you have the requisite procedures in place to support your governance obligations
For the complete text of the amendment, refer to the relevant section in the Prevention and Combating of Corrupt Activities Act, 2004 which is in the image below.
If you have any questions or need further clarification, contact us at https://corporateinsights.co.za/contact/
Disclaimer: This post is for informational purposes only and does not constitute legal advice. Always consult a qualified legal professional for specific guidance.