A wake up call for CEOs and CFOs

In the shadows of boardrooms and financial statements lurks a silent menace that threatens the very foundation of businesses worldwide: fraud and corruption.
The aftermath of the State Capture era and revelations from the Zondo Commission highlight the prevalence of fraud and corruption in companies, often catching executives off guard.
For CEOs and CFOs, the wake-up call has sounded louder than ever.
As of April 3, 2024, an amendment to the Prevention and Combating of Corrupt Activities Act 12 of 2004 (PRECCA) introduced a new provision, section 34A, which places a reporting obligation on all “persons in a position of authority” (as defined in section 34(2)), to report knowledge or suspicion of any corruption and common law offences such as theft, fraud, extortion, forgery and uttering of a forged document, involving an amount of R100 000 or more, to a police official in the Directorate for Priority Crime Investigation. Failure to report such corrupt activities constitutes an offence.