1. Department of Community Safety - 31 January 2018
PRESENTATION TO THE STANDING COMMITTEE ON THE APPOINTMENT OF NEW MEMBERS TO THE GOVERNING BOARD OF THE WESTERN CAPE LIQUOR AUTHORITY
Department of Community Safety -
31 January 2018

2. Structure of the Western Cape Liquor Authority
GOVERNING BOARD
ADMINISTRATION OF THE LIQUOR AUTHORITY
Headed by a CEO.
LIQUOR LICENSING TRIBUNAL
Consider liquor applications
APPEAL TRIBUNAL
Totally independent from the rest.
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3. Governing Board of the Western Cape Liquor Authority
INTRODUCTION – GENERAL INFORMATION
The current members of the Governing Board were appointed for a term of office of three years which ends on 11 March 2018.
Section 6 (1) of the WCLA limits the term of office of Board members to a period not exceeding 4 years.
Section 6 (2) read with Regulation 3 determines that a member may serve no more that 2 terms.
There is no provision in the Act that requires the Standing Committee to give preference to “re-appoint” any serving members.
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4. Governing Board of the Western Cape Liquor Authority
POWERS AND FUNCTIONS OF THE GOVERNING BOARD
Section 6A.
The Board—
(a) has the powers and functions conferred or imposed on it by this Act. (Details in the next slide);
(b) must manage the business of the Authority;
(c) may exercise the powers and must perform the duties conferred or imposed on the Authority by this Act or any other law, excluding powers or duties conferred or imposed specifically on the Liquor Licensing Tribunal; and (no interference with decision on specific applications)
(d) may appoint committees consisting of members of the Board.
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5. Governing Board of the Western Cape Liquor Authority
EXAMPLES OF WHAT POWERS AND FUNCTIONS HAVE BEEN CONFERRED OR IMPOSED UPON THE GOVERNING BOARD
Section 16 – to appoint the members of the Liquor Licensing Tribunal (LLT);
Section 20(4B) – to maintain oversight over the administration of the LLT;
Section 26(1) – to appoint the Chief Executive Officer of the Liquor Authority, the Secretary to the LLT and other employees to enable the Authority and the Appeal Tribunal to perform their functions;
Section 26(4) – to determine a Code of Conduct for the employees of the Liquor Authority;
Section 29(2) – to submit an annual report to the Minister.
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6. Governing Board of the Western Cape Liquor Authority
COMPOSITION OF THE BOARD
Section 3. (1) The Board consists of—
six members who have appropriate knowledge of or experience in systems and processes for ensuring proper accountability, probity and openness in the conduct of the business of an organisation; and
one member who has appropriate knowledge of or experience in dealing with the combating of the negative social consequences of the abuse of liquor,
appointed on a part-time basis by the Minister in accordance with the prescribed procedure, after considering the recommendations of the Standing Committee.
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7. Governing Board of the Western Cape Liquor Authority
AFFIDAVIT REGARDING ELIGIBILITY AND DISQUALIFICATION
Section 3 (7)
Before being appointed by the Minister, as a member of the Board, the candidate must submit an affidavit to the Minister in which such candidate declares that he or she—
(a) is eligible for such appointment; and
(b) is not disqualified from such appointment.
When making the recommendation to the Minister, the Standing Committee should ensure that those persons recommended are eligible and not disqualified.
Information on disqualification such as insolvency, etc can best be obtained during the interview stage. A questionnaire to assist in this regard is available. See later slide for disqualification. 
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8. Governing Board of the Western Cape Liquor Authority
ELIGIBILITY FOR APPOINTMENT
Section 4.
In order to be eligible for appointment as a member of the Board, a person must—
(a) have attained the age of twenty-five (25) years;
(b) be a citizen of the Republic of South Africa and permanently resident in the WC Province; and
(c) not be disqualified under section 5.
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9. Governing Board of the Western Cape Liquor Authority
DISQUALIFICATION FROM APPOINTMENT
Section 5(1)
(1) The following persons are disqualified from being appointed, continuing or acting as members of the Board—
anyone who has in the preceding ten (10) years been convicted of an offence in terms of this Act or any similar law;
anyone who in the preceding ten (10) years, whether in the Republic or elsewhere, has been convicted of theft, fraud, forgery, the uttering of a forged document, perjury or any offence under the Corruption Act, 1992 (Act 94 of 1992) or the Prevention and Combating of Corrupt Activities Act, 2004 (Act 12 of 2004) or any offence of which dishonesty is an element;
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10. Governing Board of the Western Cape Liquor Authority
DISQUALIFICATION FROM APPOINTMENT - continued
Section 5(1)
(c) an unrehabilitated insolvent or anyone who is subject to any legal disability;
(d) anyone who has in the preceding ten (10) years been removed from any office of trust on account of misconduct or dishonesty;
(e) any political office bearer; and
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11. Governing Board of the Western Cape Liquor Authority
DISQUALIFICATION FROM APPOINTMENT - continued
Section 5(1)
anyone who, whether personally or through his or her spouse, family member, partner or business associate—
has or acquires a direct or an indirect financial interest in any liquor business or establishment; or
has any interest in any business or enterprise that may conflict or interfere with the proper performance of his or her duties as a member of the Board or in any licence issued under this Act.
(2) For the purposes of this section, an indirect financial interest does not include an indirect interest held through any fund or investment if the person holding such interest has no control over the investment decisions made in respect of that fund or investment.
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12. KING IV: Core competencies for Board members
The Board is responsible for ensure the continued success of the entity and is guided by its charter. It is the link between management and stakeholders.
Board should inform and approve the company’s strategy and satisfy itself that business plans and not encumbered by unexamined risks. In doing so it identifies key performance and risk areas. The Board also ensures that the strategy will result in sustainable outcomes.
Ability to read financial reports;
Reasonable understanding of the WCLA (charter);
Exposure to strategic planning, risk management and development of key performance indicators;
Ability and willingness to collaborate with key stakeholders;
Promote ethical conduct and good corporate citizenship;
Ensure that performance and interaction is guided by Constitution and the Bill of Rights.
Maintain balance between interest of community as consumers and as economic active citizens. (our interpretation)
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13. Governing Board of the Western Cape Liquor Authority
Advert requirements:
Must have appropriate knowledge of or experience in systems and processes for ensuring proper accountability, probity and openness in the conduct of the business of an organisation;
Previous experience or qualification relevant to systems of corporate governance. (Accounting, Business Administration, Corporate Law, Finance, etc.)
Having served on similar boards;
Exposure to reading and analysing of financial statements, corporate reports, risk registers;
Ability to maintain “balance” required to ensure sustainability of WCLA;
Willing and able to attend meetings of the Board on different times;
Appointments should be made with racial and gender sensitivity
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14. Thank you