Interfront 2025 Annual Report

87 GOVERNANCE 12 Ethics Compliance with Laws and Regulations Interfront remains steadfast in its commitment to maintaining the highest standards of legal and regulatory compliance, which form the foundation of its governance philosophy and operational integrity. As a state-owned entity and subsidiary of the South African Revenue Service (SARS), Interfront operates in a highly regulated environment, requiring strict adherence to a wide range of legislative and regulatory frameworks. The company ensures ongoing compliance with all applicable laws, including the Public Finance Management Act (PFMA), Companies Act, and Basic Conditions of Employment Act. In addition, Interfront aligns its practices with the principles of the King IV Report on Corporate Governance and guidelines issued by the National Treasury. Interfront has taken note of the proposed Companies Amendment Bills, which seek to strengthen shareholder rights, promote greater transparency in executive remuneration, and enhance access to the company records. Among the proposed changes are the requirement for public and state- owned companies to disclose the remuneration of prescribed officers and directors, and to provide greater justification for such remuneration in relation to company performance. Interfront is in the process of reviewing its current internal policies and reporting structures to ensure full compliance and accountability and has proactively started generating remuneration reports for review by the Remuneration, Social and Ethics Committee. Regular internal reviews, audits, and legal assessments are conducted to evaluate the organisation’s compliance posture and identify areas for continuous improvement. These efforts are supported by comprehensive policies and a culture of compliance embedded throughout the organisation. By proactively engaging with the evolving regulatory landscape, Interfront ensures compliance and reinforces its commitment to ethical leadership, transparency, and stakeholder trust. This vigilance strengthens organisational resilience and supports the achievement of Interfront’s strategic objectives in a responsible and sustainable manner. Fraud and Corruption Interfront is unwavering in its commitment to uphold the highest standards of integrity, transparency, and ethical conduct. This commitment is reflected in the implementation of a robust Fraud Prevention Policy and comprehensive Fraud Prevention Strategy, which together form a key component of Interfront’s broader governance and risk management framework. These instruments are designed to proactively detect, prevent, and investigate incidents of fraud, corruption, or maladministration. They are embedded in Interfront’s internal control environment and support a zero-tolerance approach to unethical behaviour at all levels.