Conflicts of Interest
Related-Party Transactions
Related-party dealings are not wrong in themselves; the risk lies in the terms and in what goes undisclosed.
Why Related-Party Transactions Matter
Transactions with related parties carry an inherent risk that public resources are being directed to insiders on non-arm's-length terms, which is why GRAP 20 mandates their disclosure and the AGSA scrutinises them closely. Undisclosed related-party dealings are a classic conduit for the conflicts PRECCA criminalises. AuditPro Core captures disclosed related-party transactions by relationship type and value so the entity can demonstrate transparency and surface dealings that warrant deeper testing.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Transactions disclosed
86
▲ 14 YoY
Total value
R12.4m
Pending review
9
Flagged non-arms-length
4
Value by relationship type
Disclosure detail
| Counterparty type | Count | Value (R'000) | Status |
|---|---|---|---|
| Family member | 31 | 4100 | Reviewed |
| Business partner | 24 | 5300 | Reviewed |
| Former employee | 18 | 1900 | Pending |
| Associate entity | 13 | 1100 | Flagged |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Relationship Types
Related parties include key management, their close family, and entities they control or influence. Classifying the relationship is essential because each type carries a different risk of undue benefit.
Arm's-Length Test
The core question is whether the transaction was on terms an unrelated party would have received. Departures from arm's-length terms are where related-party risk crystallises into actual loss.
Disclosure Completeness
GRAP 20 requires that all material related-party relationships and transactions be disclosed. The risk is rarely the disclosed transaction; it is the one that was never declared.
How AuditPro Core Bridges the Gap
- Relationship mapping: transactions are tagged by relationship type to focus scrutiny where benefit risk is highest.
- Cross-referencing: declared interests are matched against supplier and payment data to surface undisclosed dealings.
- Value analytics: transaction values are aggregated by party to reveal concentration.
- Audit-ready disclosure: the register exports directly into the GRAP 20 financial-statement note.
Key Takeaways
- Related-party risk lies in the terms, not the existence, of the transaction.
- The arm's-length test is where the risk crystallises into real loss.
- Undisclosed dealings, not disclosed ones, are the true exposure.
- Matching declarations to payment data surfaces what disclosure alone misses.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.