The constitution of the Board is prescribed by the PPEC Act which requires that nine (9) members be appointed by the Executive Authority. At the date of this report, there were eleven (11) members all of whom are non-executive members.

The Board meets at least four (4) times per annum, or as circumstances necessitate. Board meetings follow a formal agenda to ensure all substantive matters are addressed and information relevant to the meetings are supplied to Board members in advance so that they can make informed and reasoned decisions.

All documents submitted to the Board are reviewed by the PPECB Executive Committee and approved by the Chief Executive Officer to ensure completeness and relevance.

None of the members of the Board had any interest in contracts entered into during the year under review.

The PPECB is self-funded by charging statutory fees (levies) to recover costs for services rendered. The PPECB made a net deficit of R19.27 million (2024: R1.60 million) for the year ended 31 March 2025. The financial statements provide further details regarding the entity’s financial performance.

The Board confirms that they are responsible for preparing the annual financial statements that fairly present the state of affairs of the PPECB at the end of the financial year. The annual financial statements have been prepared in accordance with Standards of Generally Recognised Accounting Practice (GRAP) and the requirements of the PFMA.

They are based on appropriate accounting policies and are supported by reasonable and prudent judgments and estimates. The external auditors are responsible for carrying out an independent examination of the annual financial statements in accordance with the International Standards of Auditing and for reporting any findings thereon.

The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

The Board reviewed and approved the PPECB’s financial budgets for the period 1 April 2025 to 31 March 2026 and is satisfied that adequate resources exist to continue business for the foreseeable future. The Board confirms that there is no reason to believe that the PPECB’s operations will not continue as a going concern in the year ahead.

The corporate strategic plan is approved by the Board and Executive Authority and contains predetermined strategic and operational objectives. The plan together with associated budgets, is approved at the beginning of the financial year in compliance with the provisions of the PFMA.

The PPECB has analysed the environment within which it operates and has identified as some of its biggest challenges; the cost of doing business, financial performance of the Laboratory and the retention of critical technical skills. Informed by this analysis, the PPECB developed a five (5) year plan focusing on customer centricity, operational efficiency and competent human capital to effectively deliver on its mandate.

In terms of the National Treasury Regulations issued in accordance with the PFMA, the PPECB must in consultation with the Executive Authority annually agree on its key performance objectives, measurements and indicators. These are captured in the shareholders’ compact which is annually concluded between the PPECB and DoA.

The shareholders’ compact promotes good governance practices at the PPECB by helping to clarify roles and responsibilities of the Board and DoA, as well as ensuring agreement on the PPECB’s mandate and key objectives.

The Board is committed to the Environmental, Social and Governance (ESG) principles. An ESG strategy is being established to promote an actionable way to measure progress on a more sustainable future.

In the PPECB’s annual performance information, its achievements are highlighted against the predetermined objectives for the year. The PPECB achieved eleven of its fourteen objectives for the year, a 79% success rate. Further detail on the predetermined objectives can be found in the annual report.

The PPECB may, with a view to meeting expenditure incurred by the entity, in the performance of its functions in terms of the Agricultural Products Standards Act 119 of 1990 (APS Act) and the regulations, by notice in the Gazette impose a statutory fee (levy) on any perishable product exported under contract or other arrangement made by, through or with the consent of the members of the Board. The proposed statutory fees (levies) for the financial year are subject to annual review and approval by the Executive Authority.

The significance and materiality framework for reporting losses through criminal conduct and irregular, fruitless and wasteful expenditure, as well as significant transactions envisaged per section 54(2) of the PFMA has been confirmed by the Board. Losses through criminal conduct and irregular, fruitless and wasteful expenditure which are identified are disclosed as prescribed in terms of relevant legislation.

The Board has delegated a range of matters to the PPECB Executive Management and has established two (2) board committees (Audit Committee and Human Resources and Ethics Committee) to assist in discharging its responsibilities. Delegating authority to committees or management does not in any way release the Board of its duties and responsibilities. There is always transparency and full disclosure from the board committees to the Board.

The PPECB has 602 (2024: 590) permanent employees, 224 (2024: 296) fixed-term and seasonal contract employees as at 31 March 2025.

The members of the Board are not aware of any matters or circumstances arising since the end of the financial year, not otherwise dealt with in the financial statements, which will have a significant impact on the operations, financial results or the financial position of the PPECB.

The Board believes that management has during the year complied in all material respects, with all legislation and regulations applicable to it, including without limitation, the PFMA and any other applicable legislation, the National Treasury Regulations and the Income Tax Act 58 of 1962. The PPECB has compiled a Legal Compliance Register which is monitored and updated as legislation changes and reported to the risk committee periodically.