In recognition of the commitment to this vision, Nedbank Lesotho was voted the best bank in Lesotho in 2006 by Lesotho-based business, state-owned enterprises (SOEs), government and private-sector bodies in recognition of 'exceptional managerial and corporate governance qualities'. The voting was done through research facilitated by the South African publishing company, Professional Management Review (PMR). Nedbank Lesotho received a Diamond Arrow Award.
The key country risks are as follows:
The key risks to the bank are as follows:
GOVERNANCE STRUCTURESNedbank Lesotho fully subscribes to the governance principles enshrined in the King II Report. Therefore, the bank has put in place governance structures that ensure compliance with the requirements of the code as well as the requirements of the Banks Act. Nedbank Lesotho is substantially compliant with the code, with the board continuously monitoring its own composition as well as the composition of the committees to ensure compliance. In the discharge of the governance oversight responsibility, the board is assisted by the following committees:
- Audit Committee;
- Directors Affairs and Remuneration Committee; and
- Risk, Compliance and Loan Review Committee.
The committees have formal written terms of reference and report into the main board. The board and the committees meet quarterly, therefore they have met four times in 2006.
The Nedbank Lesotho Board comprises 10 directors, 60% of whom, including the chairman, are independent non-executive directors in compliance with the code.
MONEY LAUNDERINGNedbank Lesotho has rolled out a money-laundering control programme throughout the bank, which ensures that the bank meets international best practice and group minimum standards in the field of money-laundering control. The training provided to staff has ensured that all staffmembers understand their duties and obligations.
The major challenge the bank faces in this regard is around the fact that there is no anti-money-laundering (AML) legislation in Lesotho, with the result that we have had to engage with the Regulator and other banks to ensure that AML is not used as a competitive issue. This will also present a challenge with reverification of existing clients and freezing of non-compliant accounts. The bank is, however, continuing with efforts to ensure that all clients are properly identified and verified.There is a standing AML Steering Committee, which comprises parties drawn from the business units Information Technology, Human Resources, Marketing Compliance and Risk. Other challenges in the implementation process are around lack of a proper address data base for majority of the clients.
All clerical staffmembers have received training on AML awareness and implementation, with the awareness training requiring an 80% pass mark. All new staffmembers receive AML training as part of their induction within three months of joining the bank.
CORPORATE SOCIAL RESPONSIBILITYNedbank Lesotho continues to be respected in the area of corporate social responsibility in the country for the effort put into social issues, and the bank continues to support worthy social and developmental causes.
|National University of Lesotho|| Nedbank provides an annual award for the best student in
|Lesotho SummerHigh Altitude Marathon||Annual road running event where Nedbank sponsors a water point.||LSL4 000|
|Mohokare Golf Classic|| This is the second year Nedbank has co-sponsored this event with
Maseru Sun Hotel and Casino, and this year it attracted more golfers.
This two-day event was played on two courses, the Maseru Golf Course and the Ladybrand Golf Course.
|Morija Arts and Cultural Festival|| This year Nedbank sponsored a number of activities, including Women
in Handicrafts in Lesotho, poetry, traditional games, childrens activities as well as the jazz festival.
|Media||Nedbank sponsors the media to give more coverage to sporting and other events in the South African Development Community (SADC) region.||LSL7 000|
|Law Society of Lesotho Annual Justice MofokengMemorial Lecture|| Nedbank sponsored the annual memorial lecture in honour of the late
Chief Justice Mofokeng, hosted by the Law Society of Lesotho.
|Rotary Club of Maloti/Maseru||Nedbank donated funds to the organisation to help it raise funds for disadvantaged communities, especially in the rural areas.||LSL10 000|
STAFF ISSUESIn line with the strategy of the bank that was drawn up in 2005, Nedbank Lesotho set out to achieve the following in 2006:
- Establishment of a wellbeing function in order to deal with staff problems as they affect performance. The function has been established and the advisory committee has been set up. A number of staffmembers are being assisted.
- Performance management. A total of 30 managers were trained on job profiling in May 2006. Job profiling occupies a centre stage in human resources processes as it not only highlights the duties to be performed, but the competencies required of the incumbent in any position.
- Recruitment and retention of quality staff. In this area the Recruitment and Selection Policy was approved by the board in 2005. This year the board has approved the retention strategy of the bank and it forms part of the HR managers report to the DirectorsAffairs Committee.
- Training and development. The position of a training manager was established to ensure more systematic and focused training and development while ensuring alignment to business needs.
- For the first time in its history Nedbank Lesotho organised a very successful Family Day event on
11 March. We also intend inviting our pensioners to the occasion in 2007.
- In terms of remuneration the salary scales were revised and aligned with best practice.
- On the reward and recognition side, one of our staffmembers won a trip to Portugal as one of the groups top achievers.
Development of entrepreneurial skillsNedbank Lesotho intends holding a competition to enhance an entrepreneurial culture among students and in the community especially with regard to the formation of small businesses. This competition involves teams from different higher-learning institutions around the country that are formed through an organisation called Students in Free Enterprise. Students will be given a topic to research and they will develop a strategy and implement it within an existing business that they choose.
- Branch-in-a-box plans are under way to establish a presence in the northern region of the country through a branch-in-a-box in Botha Bothe and a similar branch at the National University of Lesotho targeting the university students.
- Rollout of additional ATMs additional ATMs have been procured for rollout in the regional centres.