annual financial statements - Nedbank Group Limited

38 NEDNAMIBIA HOLDINGS LIMItED ANNUAL REPORt 2010
(“icAAp”) reporting to the Bank of namibia. the icAAp report is
submitted to the Board of directors for approval before submitting
it to the Bank of namibia. the Basel ii steering committee has
recently been disbanded, after the successful implementation of
Basel ii reporting to the local regulator, but a technical forum under
the guidance of the chief risk officer continues to evaluate the
assumptions and results of the Basel ii calculations.
sCHedule oF delegated autHoRities (“soda”)
A schedule of delegated authorities, setting out the mandates, powers
and authority levels that apply to the various decision-making bodies
and officers who are responsible for governance and management of
the group, is in place.
the Board subscribes to the ‘four eye’ principle of management, in
terms of which no individual officer of the group (including the
managing director) acting alone, is empowered to bind the group in
relation to material matters.
emPloYmeNt eQuitY
the group continuously strives to achieve employment equity in the
workplace and to enhance competitiveness. it is a carefully planned,
managed and monitored process, incorporating strategies aimed
at transforming the employment environment within the group.
these mechanisms provide for the recruitment, development and
promotion of competent individuals, especially those from previously
disadvantaged groups, to allow them to gain access to opportunities
based on their suitability, while ensuring the maintenance of core
standards within the organisation. A committee has been established
to deal with employment equity matters.
Code oF etHiCs
the nednamibia Holdings group, as part of nedbank group limited,
is a value-driven organisation, which is committed to organisational
integrity and high standards of ethical behaviour in its dealings with all
the group’s stakeholders. its values of integrity, respect, accountability,
pushing beyond boundaries and being people-centered have been
incorporated into a code of ethics as the foundation of the nedbank
namibia culture. training and awareness on the code is ongoing.
failure to maintain ethical standards may result in disciplinary action.
the Board of directors is confident that high ethical standards are
maintained in the group and that business is conducted in a manner,
which under all reasonable circumstances, is beyond reproach.
goVeRNaNCe stRuCtuRes witHiN otHeR
oPeRatiNg subsidiaRies
NedLoans (Proprietary) Limited (“NedLoans”)
As the Bank’s subsidiary, nedloans’ internal control, risk management
and compliance environments are monitored by the Bank’s Audit and
risk and capital management committees, which in turn report into
the Bank’s Board of directors.
NedCapital Namibia (Proprietary) Limited (“NedCapital”)
nedcapital, a 100% owned subsidiary of nednamibia Holdings, has
a matrix reporting structure, whereby statutory reporting is done
to the nednamibia Holdings Board, while nedbank capital south
Africa assumes responsibility for the technical risk and compliance
functions. the nednamibia Holdings Audit committee monitors
nedcapital’s internal control environment while the group risk and
capital management committee monitors the company’s capital
management as well as its risk management, information technology
and compliance environments. Both committees report into the
nednamibia Holdings Board of directors. nedcapital’s governance
and control structures are constantly refined.
NedNamibia Life Assurance Company Limited
nednamibia life Assurance company is a 100% subsidiary of
nednamibia Holdings. the company’s internal control environment
is monitored by the nednamibia Holdings Audit committee while
the group risk and capital management committee monitors the
company’s capital management as well as its risk management,
information technology and compliance environments.
FiNaNCial statemeNts
the directors are responsible for the annual financial statements,
which are prepared in accordance with and comply with international
financial reporting standards (“ifrs”) adopted by the international
Accounting standards Board (“iAsB”), and interpretations issued by
the international financial reporting interpretations committee
(“ifric”) of the iAsB and the namibian companies Act. the accounting
policies used are consistently applied and supported by reasonable
and prudent judgements and estimates. the directors are responsible
for ensuring that the financial statements fairly present the state
of affairs of the group at the financial year-end and the results of
its operations for the year under review. the external auditors are
responsible for independently reviewing and reporting on the fair
presentation of these financial statements.