1. PRESENTATION ON THE CHIETA CONFLICT OF INTEREST POLICY TO THE CHIETA REGIONAL STAKEHOLDER FORUMS IN OCTOBER 2017

2. OUTLINE OF PRESENTATION
CONTEXT AND INTRODUCTION
SCOPE AND APPLICABILITY – AFFECTED PARTY DEFINITION
CONFLICT OF INTEREST DEFINED
MANAGEMENT OF CONFLICT OF INTEREST
GIFTS AND ENTERTAINMENT
IMPLEMENTATION
QUESTIONS, ANSWERS AND CLARITY

3. CONTEXT AND INTRODUCTION
CHIETA Governing Board approved an updated CHIETA Policy on Conflict of Interest
CHIETA is committed to execute its mandate in such a manner that judgement and business decisions are not influenced by undue direct or indirect personal interest
Board adopted the principle that Conflict of Interest SHOULD FIRSTLY BE AVOIDED, if not it should be managed and disclosed in a specified manner
Board approved Policy provides guidance on the process in managing and governing existing and potentail conflict of Interest
It is an Integrated Policy that links to relevant sections of the PFMA, Treasury Regulations, Companies Act, KING IV and the CHIETA Code of Conduct as per the CHIETA Constitution

4. SCOPE AND APPLICABILITY
Policy applies to all affected parties without exception namely the CHIETA Board, Board Committee members, CHIETA Stakeholders and with specific reference to stakeholder representatives functioning within CHIETA’s Constitutional or Board approved structures e.g. the Chambers, and various task teams, functional committees and to CHIETA Management and employees

5. CONFLICT OF INTEREST DEFINED
A conflict of interest is deemed to exist if there is conflict with the CHIETA interest, if it influences, has the potential to influence on, or could be perceived to influence an affected party’s performance of his/her duties and decision making processes in their respective roles and responsibilities at CHIETA
Direct or Indirect conflict of Interest :
Direct where affected party has a personal financial interest and
indirect where someone related to an affected party such as an immediate family member or business associate has a personal financial interest
Distinction between the rendering of a services versus the receiving a services
Rendering of Goods and services is defined as services as they pertain to transactions governed under the CHIETA Supply Chain process
Receiving of goods and services from the CHIETA for example Board members whose companies receive grants from CHIETA

6. MANAGEMENT OF CONFLICT OF INTEREST
There are two separate routes for managing conflict of interest on rendering versus receiving of goods and services
ROUTE ONE: RENDERING OF SERVICES BY AN AFFECTED PARTY TO CHIETA
Must be disclosed within the CHIETA Disclosure System and Register to be managed accordingly
Affected parties are prohibited from being directly or indirectly associated with any business entity that provides goods and services to CHIETA
In cases of such a relationship existing, affected parties must either relinquish their positions in such entities or step down/resign from the CHIETA (Direct wording taken from the CHIETA Code of Conduct in the CHIETA Constitution)

7. MANAGEMENT OF CONFLICT OF INTEREST
ROUTE TWO: RECEIVING OF SERVICE BY AN AFFECTED PARTY FROM CHIETA
Any business interest or relationship that could represent a conflict of interest must be declared annually upfront in the CHIETA Disclosure System and Register
Conflict of Interest must also be declared as soon as an affected party becomes aware of a conflict anytime within a specific financial year
Disclosure of interest at each governance/management meeting to continue as per current
Levels of Authority and approvals introduced that must be followed in all cases where the conflict cannot be avoided and where an affected party is of the opinion that the proposal is in the best interest of CHIETA
Approval for person serving on stated stakeholder structures to be provided by the Governing Board via the Governance and Strategy Committee of the Governing Board

8. MANAGEMENT OF CONFLICT OF INTEREST
ROUTE TWO: RECEIVING OF SERVICES BY AN AFFECTED PARTY CONTINUED: KEY APPROVAL CRITERIA THAT CHIETA BOARD WILL CONSIDER
Was the conflict declared in the CHIETA Disclosure System?
Can it be responsibly managed without prejudice to CHIETA?
Not related to the provision of goods and services to CHIETA
Treat applications in good faith and without bias
Fairly evaluate the conflict of interest situation inclusive of organisational risks and reputation
Consider the materiality framework of the business proposal
Does the affected party have an unfair advantage or knowledge prior to submitting the business proposal?
Will it withstand public scrutiny/media

9. MANAGEMENT OF CONFLICT OF INTEREST
ROUTE TWO: RECEIVING OF SERVICES BY AN AFFECTED PARTY CONTINUED
In considering above-mentioned criteria it will be in the sole discretion of the Governing Board
Can ask the affected party to resign from their position if he/her want to pursue their business interest with CHIETA
Decision is final and binding
Clear communication to affected party to ensure that it is understood and complied with
CHIETA to maintain proper records of the process followed, decisions made and reasons advanced

10. MANAGEMENT OF CONFLICT OF INTEREST
GIFTS AND ENTERTAINMENT
Detailed definition of gifts – means anything of value but not limited to discounts, loans,cash,prizes.favourable terms on products and services, vacation facilities, shares, home improvements, tickets, gifts certificates, sport events, spa treatments and golf days
Affected Parties( including staff) must not provide or accept gifts that could or appear to influence their objectivity in carrying out their responsibilities in the best interst of CHIETA
Receiving of gifts is not inherently unethical. CHIETA recognises that it can be reasonable and appropriate.
Above-mentioned is quantified that affected parties may not receive gifts or entertainment to the value of more than R350
Gifts over R350 must be handed over to the Executive Governance and Risk and entertainment above R 350 should be refused
All gifts need to be declared to the Governance office for capturing in the CHIETA Gifts Register

11. QUESTIONS, ANSWERS AND CLARITY
THANK YOU