housing - National Housing Finance Corporation

CORPORATE GOVERNANCE CONTINUED
MCC
MCC is chaired by the CEO and meets at least twice a
month or more frequently if circumstances so require.
The Committee comprises Executive Managers, the
Legal Services Manager and Senior Managers with
appropriate expertise. Each loan application is supported
by a proposal from an Operating division and an
independent due diligence report prepared by the
Corporate Risk department.
The responsibilities of the Committee include, but are
not limited to:
u approving loan facilities of R20 million and below;
u recommending loan facilities in excess of R20 million
and those which cumulatively exceed R20 million to
the BCC for approval;
u consideration of credit policies and recommendation
thereof to BCC; and
u ensuring adherence to credit and default procedures
and the collection of outstanding debt.
Procurement Committee (“the Committee”)
The Committee is a subcommittee of Exco and is
chaired by an Executive Manager. The Committee
comprises the following members:
u Procurement Officer; and
u representatives from the Legal department and
Finance and Support Services.
The Committee meets monthly or more frequently if
circumstances so require. The responsibilities of the
Committee include, but are not limited to:
u dealing with matters concerning procurement of
services and appointment of service providers; and
u monitoring compliance with the Procurement Policy
and Procedures.
Financial Risk Management Committee (“FRMC”)
FRMC is a subcommittee of Exco and meets
bi-monthly or more frequently if circumstances so
require. The Committee comprises the CEO (Chair),
Chief Financial Officer and Money Market Dealer.
The functions of the Committee include, but are not
limited to:
u managing treasury risks; and
u making investment decisions and overseeing the
management of investments in terms of the mandate
and policies of the Corporation.
CODE OF ETHICS (“THE CODE”)
The Corporation is managed ethically and in line with
the Code which has been developed with the input of all
staff and adopted by the HRER.
The Code is based on the fundamental ethical
principles of fairness, transparency, integrity, reliability,
responsibility and honesty and deals with the
following:
u conflict of interests;
u outside activities and business interests;
u relationships with outside parties;
u gifts, hospitality and favours (receiving and giving);
u private business on Corporation’s premises;
u moonlighting;
u use of the Corporation’s resources; and
u whistleblowing.
No incidence of unethical conduct which required
investigation or further action was reported during the
year under review.
The Corporation has engaged the services of “Tip-offs-
Anonymous,” which whistleblowing service is rendered
independently by Deloittes. Through awareness
campaigns, the Corporation encourages its employees
to use this service to report any wrongful, illegal or
corrupt acts. Deloittes report to the Audit, Risk and
Compliance Manager and quarterly reports are submitted
to the A&R Committee.
18 NHFC ANNUAL REPORT 2006