Civil Society Consultative Group Response to King III

A consultative forum representing 27 non-profit organisations drawn from various parts of South Africa met in Cape Town on Wednesday 25 August 2010 to consider a joint response to the King III report, which had been issued earlier in the year by the Institute of Directors.  The forum consisted of representatives of individual civil society organisations and representing structures such as the South African NGO Coalition (Sangoco) and the National Welfare Forum.  A representative from the NPO Directorate in the Department of Social Development was also present.

Of particular concern to the forum was the fact that the King III report purported to be applicable also to the non-profit sector, though that sector had not been consulted and was not represented on the drafting committee.  The Forum noted a number of statements issued by Professor Mervyn King and the Institute of Directors to the effect that the principles of the King III report should be regarded as applicable to all entities, however constituted – with the sole exception of the judiciary – and including the public sector, higher education institutions and civil society.  It also noted a subsequent statement issued by Professor King on Monday 23rd August to the effect that the King Committee had now decided to convene a special sub-committee to consider Practice Notes explaining how the principles of its earlier Report should apply to the non-profit sector.  It was envisaged that the proposed King sub-committee would include representatives from the sector for the first time.

The Forum noted with concern that the King III Report had been produced thus far without any representation or adequate consultation with the non-profit sector, and that a written submission to the King Commission from Inyathelo – the South African Institute for Advancement signed by 57 non-profit organisations had not been noticeably considered .  As a result, it was not surprising that it should be widely regarded as deficient in a number of material respects in relation to that sector.  It was also regarded as anomalous that access to the King III Report should be restricted by an assertion  of copyright and the imposition of a significant cost per copy payable to the Institute of Directors.

After a full discussion, the participants in the Consultative Forum resolved to advise the King Committee that, rather than participate in a belatedly constituted special sub-committee, they  would themselves constitute an interim committee with a mandate to consult and invite submissions from civil society formations, donors and other interested parties, including the NPO Directorate itself, taking into account its statutory responsibility for NPO governance practices.

The Forum recognised the importance and urgency of developing a Code specifically designed for the South African non-profit sector and in this task the work of the King Committee would be of considerable value.  However, the Forum indicated that an NPO Code should reflect the distinctive nature, values and character of the sector, whilst recognising similarities and differences in relation to the corporate sector for which the King Code had been primarily designed on behalf of the members of the Institute of Directors.

In the light of these decisions, the Consultative Forum overwhelmingly resolved not to participate in the preparation of practice notes by the special sub-committee established by the King Committee, but in due course would hope to engage further with the King Committee in regard to its own proposals.

Enquiries:

Shelagh Gastrow
Executive Director
Inyathelo : The South African Institute for Advancement
Tel :021 465 6981
E-mail: ShelaghG@inyathelo.org.za