South Africa: 'Use Sarbanes-Oxley Delay Wisely'

South African companies which are subject to US Securities Exchange Commission (SEC) reporting requirements should use the delayed implementation of new corporate governance requirements to ensure that their internal controls are up to scratch.

That is the message David Noon, a UK-based partner in Deloitte's enterprise risk services group, has for the handful of South African companies that must now comply with section 404 of the Sarbanes-Oxley Act by July next year. Sarbanes-Oxley was US legislators' response to the corporate governance crisis sparked by the collapse of Enron. The law has resulted in a significant change to the reporting requirements of US-listed companies and their subsidiaries.

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