CHIETA Conflict of Interest Policy Presentation

2. PRESENTATION TO CHIETA CHAMBERS ON 9 FEBRUARY 2017 ON CHIETA POLICY ON CONFLICT OF INTEREST Mr Trevor Channing CHIETA Executive Manager: Governance and Risk

3. OUTLINE OF PRESENTATION CONTEXT AND INTRODUCTION SCOPE AND APPLICABILITY IMPORTANT POLICY DEFINITIONS CONFLICT OF INTEREST DEFINED MANAGEMENT OF CONFLICT OF INTEREST GIFTS AND ENTERTAINMENT IMPLEMENTATION QUESTIONS, ANSWERS AND CLARITY

4. CONTEXT AND INTRODUCTION CHIETA Governing Board mandated on 21 November 2016 an updated CHIETA Policy on Conflict of Interest CHIETA 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 particular manner Board approved Policy provides guidance on the process in managing and governing existing and potential conflict of Interest It is an Integrated Policy that links to relevant section of the PFMA, Treasury Regulations, Companies Act, KING IV and the CHIETA Code of Conduct as per the CHIETA Constitution Objective is to regulate and clarify conflict of interest within the CHIETA context and set appropriate standards for organisational behaviour and ensuring a common mind-set

5. SCOPE AND APPLICABILITY Policy applies to all affected parties defined in the Policy Affected parties are expected to perform their duties conscientiously, ethically and in accordance with CHIETAs best interest All affected parties must ensure that they understand the intent and application of this policy and conduct themselves in a manner that positively advance and reflects the principles articulated in the Conflict of Interest Policy

6. IMPORTANT POLICY DEFINITIONS Affected parties without exception to the CHIETA Governing Board members, Board Committee members, stakeholder functioning within any Constitutional (Chamber members ) or Board approved stakeholder structures , CHIETA management and staff Goods and Services provided are defined as goods and services as it pertains to transactions that are governed under the CHIETA Supply Chain process- tangible or physical items such as assets, catering, travel, stationery, consulting services etc. Grants are designed funding provided by CHIETA for skills development and training in THE Chemical Industry. Mandatory Grants fund education and training programmes as contained in WSP’s and Discretionary Grants to fund training programmes and projects in support of SSP

7. CONFLICT OF INTEREST DEFINED Conflict of Interest is deemed to be in conflict with the CHIETA interest if it influences or has the potential or could be perceived to influence an affected party’s performance of his\her duties and decision making in their respective roles and responsibilities at CHIETA. A conflict of interest is present in CHIETA when one or more of the following instances arise: Direct and indirect interest of an affected party that could improperly influence or perceive to influence the objective and effective performance of an effected party’s duties and responsibilities Organisational decision making , judgement discretion by any affected party are influenced by and based on private interest or personal gain Private interest has the potential to distract the affected party from discharging its duties in good faith Usage of confidential information or information not available to the public which is obtained through the relationship between CHIETA and the affected party for purposes of advancing private interest or personal gain

8. CONFLICT OF INTEREST DEFINED CONTINUED A conflict of interest is deemed to be in conflict with the CHIETA interest if it influences, has the potential to influence or could be perceived to influence an affected parties 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 personalfinancial 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 are defined as services as it pertains to transactions governed under the CHIETA Supply Chain process Receiving of goods and services from the CHIETA for example Board members who companies receive grants from CHIETA There are two separate routes for managing conflict of interest on rendering versus receiving of goods and services

9. MANAGEMENT OF CONFLICT OF INTEREST ROUTE ONE: RENDERING OF SERVICES BY AN AFFECTED PARTY Must be disclose 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 the cases of such 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)

10. MANAGEMENT OF CONFLICT OF INTEREST ROUTE TWO: RECEIVING OF SERVICES BY AN AFFECTED PARTY CONTINUED: KEY APPROVAL CRITERIA Was the conflict declared in the CHIETA Disclosure System Can it be responsibly managed without prejudice to CHIETA Not in connection with the provision of goods and services to CHIETA Treat application in good faith and without bias Fairly evaluate the conflict of interest situation inclusive of organisational risks and reputation Consider the materiality framework 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

11. MANAGEMENT OF CONFLICT OF INTEREST ROUTE TWO: RECEIVING OF SERVICES BY AN AFFECTED PARTY CONTINUED: KEY APPROVAL CRITERIA CONTINUED In considering above-mentioned criteria it will be in the sole discretion of the Governing Board on recommendation from the Governance and Strategy Board Committee. Decision is final and binding Clear communication to affected party to ensure that the outcome of decision is understood or complied with CHIETA to maintain proper records of the process followed, decisions made and reasons advanced

12. 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 must not provide or accept gifts that could or appear to influence their objectivity in carrying out their responsibilities in the best interest of CHIETA Receiving of gifts is not inherent 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 R 350 or more Gifts over R 350 must be refused and handed over to the Executive Governance and Risk.

13. MANAGEMENT OF CONFLICT OF INTEREST IMPLEMENTATION Governance Unit supported by the Research and Skills Planning Unit to oversee the process on behalf of the Board and CEO CHIETA’s will manage an annual declaration processes for all affected parties Training and awareness Onus is on every single affected party to familiarise itself with the policy and adhere to the policy Consequence management in cases of non compliance Declaration forms have been communicated to Chamber members to be returned by 24 February 2017 to CHIETA Dedicated e-mail address namely chamberdisclosure@Chieta.org.za Quarterly reporting to the Board via the Governance and Strategy Committee

14. QUESTIONS, ANSWERS AND CLARITY THANK YOU