CIPC Annual Report V1

Table B. 23: Summary - nature of cases # Types of cases

Q4

Q3

Q2

Q1

No of cases

% No of cases

% No. of cases

% No. of cases

%

1 Unauthorised/fraudulent removal/entry of directors

26 28% 28 35% 18 25% 39 31%

2 Misuse of clients’ accounts

3 0 3

3% 0 0% 0 3% 3

0% 8 11% 11 7% 0% 1 01% 41 33%

3 Essential services certificates complaints 4 Internally reported matters (involving staff)

4% 1 01% 0

0%

5 Other:

19 20% 11 14% 25 35% 21 17% 43 46% 37 47% 19 27% 15 12% 94 100% 79 100% 72 100% 127 100%

6 Feedback request/additional information

Total

Allegations/cases are classified under defined categories based on the nature of calls and complaints received. Allegations which fall under more than one category are classified using the primary reason for reporting. As illustrated by the table above, allegations relating to unauthorised director changes remain in the majority. Considering the results of the four quarters, the average

percentage of this category was 30% of all reported cases.

Of concern, is the increase in the number of allegations against or implicating employees of the CIPC. History has proven that investigations into such allegations have usually increased the number of employees involved in a reported matter.

Table B. 24: Summary of outcomes- completed investigations/closed matters Type of allegation Total resolved Proven

Inconclusive

Not

No % No % Not

%

Unauthorised/fraudulent director changes

39

25 64% 4

10% 10 26%

Unauthorised use of customer code/client account

3 4

2

67% 0

0% 1 0% 0

33%

Other Total

4 100% 0 31 67% 4

0%

46

9% 11 24%

1.3 Key policy development and legislative changes The Companies Act (2008, as amended) is undergoing amendment in order to provide legal backing for the Introduction of a Beneficial Ownership Register. The Strategic Plan is taking into account this requirement and the organisation is readying itself to be able to implement and administer the register. The Patent Bill has received certification from the Office of the Chief State Law Advisor. Pre-certification of the proposed minor amendments to the Designs Act (1993) was also received. Following the ESIED Cluster presentation, permission will be sought from Cabinet to publish the Bills for public comment.

Of the 46 matters concluded during the quarter, 67% were found to have merit. Recommendations for corrective actions were provided with most already implemented. Majority of those were related to fraudulent director changes. Reasons for this included: • Unauthorised usage of identity documents. • Fraudulent signature and other information provided. • Third parties (agents) involvement in the transactions. • Infighting among directors resulting in fraudulent actions. Matters, which were not conclusive, resulted from insufficient evidence that the transaction was fraudulent and no further/ additional information provided by the client to substantiate the claims. Considering the number of proven allegations, the CIPC must ensure controls are put in place or enhanced to minimise of chances of fraud occurring as result of control gaps in the system.

COMPANIES AND INTELLECTUAL PROPERTY COMMISSION I Annual Report 2020/21

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