Corporate Governance

Khumo places corporate governance highly in all the facets of the business and sees it as an absolute imperative in business today. Overall the Board is responsible for the total process of risk management, internal control and management. The management formulates the internal process and implements it in accordance with approval process.

A policy and procedures manual exists and this governs the approval limits and access to accounts information. Khumo also makes use of a Procurement policy whereby all maintenance and other cost management are regulated according to the requirements of the client.

The Khumo Controls have been adapted from the stringent compliance processes presently utilised by BIHL, shareholder responsible for corporate governance across all subsidiaries, including Khumo.  For us this is where risk mitigation strategies in any portfolio we manage emerge.

The Head of Risk and Compliance (BIFM), supported by Risk Owner and Champion in Khumo, ensures that risks are identified, prevented or mitigated. Compliance checks, adherence to property management agreements and operational policies and procedures are regularly conducted.  Bi-annually Khumo undergoes rigorous internal audit procedure (by Sanlam Internal Audit) which tests best practices as to the manner by which portfolios are managed.  Once yearly, Khumo is audited by Ernst & Young.

Khumo also complies with various relevant statutes such as the Real Estate Professionals Act, Companies Act, Pension and Provident Funds and other acts and regulations governing property investment process.