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FASSET | Annual Integrated Report 2022/23

9. COMPLIANCE WITH LAWS AND REGULATIONS

FASSET reviews its regulatory environment on a regular basis and has developed and approved a Compliance
Regulatory Universe for all applicable laws and regulations.

CRMPs are completed before actual monitoring and PFMA compliance checklists are completed and presented
to ARC quarterly before submission to the relevant stakeholders. During the period under review, FASSET
complied with all laws and regulations impacting its operations.

In terms of B-BBEE, to improve the scorecard, FASSET is taking an active role in performing activities that will
improve the B-BBEE level.

10. FRAUD AND CORRUPTION

The Fraud Prevention Plan was developed within the context of the Risk Management Framework with the aim of
reducing fraud. Various measures have been implemented to prevent fraud. These include:
• Authorisation;

• Custody of assets;
• Detection controls;
• Physical supervision;
• Management information;
• Segregation of duties; and
• Physical security and information security.

The Fraud Prevention Policy includes response mechanisms to report, investigate and resolve incidents of fraud
impacting FASSET. An outsourced service provider maintains a fraud reporting hotline, where employees
and stakeholders report incidents of corruption, fraud and unethical practices within the workplace. Monthly
reports from the hotline service provider are dealt with confidentially in line with the approved internal policy
for handling fraud allegations. FASSET also has a Whistle-blowing Policy in place to encourage anonymous
reporting of any possible fraudulent or corrupt activities without the fear of victimisation. During the 2022/23
Financial Year, FASSET did not receive any reports of internal or external corruption or fraud.

11. MINIMISING CONFLICT OF INTEREST

FASSET abides by the following principle: A constituent, representative or employee of FASSET who is directly or
indirectly interested in any business of FASSET or the committee of which he/she is a member, or who holds any
office, or possesses any property that might cause a conflict of interest or duties or such possible perception,
must:

• Declare such interest or potential conflict of interest;
• Disclose, in writing, to the Board and CEO (in the case of an employee) any conflict of interest or duties,
or possible perception of such, as soon as practicable after he/she becomes aware of the relevant facts
and shall not participate in the discussion or of the decision taken; and
Make the future count.
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