Page 23 - FOL2023

Corporate Governance

Reflections on Governance, Risk

and Compliance (GRC)

Advocate Lintle A. Tuke

Vice President – Law Society of Lesotho

President – Friends of the Faculty of Law

GRC Specialist – Tuke & Scholtz Inc.

Good corporate governance is a base characteristic for a strong and vigorous organisation. It
sets the right tone for how the organisation behaves and relates both internally with itself, and with the
market at large. It delineates the connection and relationship between the Governing Body, management
and the entirety of the organisation.
M ost, if not all, of the cursory look at the company’s its non-compliance. Fortunately,

compliance
known
Governing Body and executive
this company was acquired by
failures are directly committee (exco) reveals that
attributable to a weak Governing there was no diversity. Zenith Horizon (Pty) Ltd which
was fully compliant
Body setting the wrong tone for We can finally ruminate on yet
governance, risk and compliance. “The Board did not another incident which unfolded
The effects almost always have black people and in the public sphere, i.e., the
trickle down from the top to the only one female.” Vodacom Lesotho and Lesotho
very bottom. Take for instance, Communications Authority (LCA)
the South African Steinhoff Let us recall the woes of a debacle of 2020. After failing to
scandal involving accounting Lesotho legal expenses insurance
and financial fraud for over 15 company – The Legal Voice Ltd -
years. For that period, Steinhoff which led to its fall. This company
had consistently falsified its had enjoyed a seemingly leading
financial position, confirmed by position in its industry. It had
audit reports, to obtain more branches in almost every district
credit and investment. This in Lesotho with no apparent
was a successful scam until or significant competition.
the scandal surfaced in 2019. Arguably, this company enjoyed
The company’s share price a self-created monopoly from
instantly plummeted to epidemic 2011 till 2017 when it failed
proportions, from over thousands to comply with the mandatory
to just R46 per share in a matter statutory requirements for
of minutes, wiping out investors’ licensing. The Central Bank of
stakes, including pensions, in Lesotho (CBL), as the Regulator,
the process. Many employed by had to abstain from renewing
the company lost their jobs. A the Legal Voice Ltd license for

Issue 2022 FOL Quarterly 25