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Highlights – Board Meeting of 12 September 2018
Following the review by CODE of its discussions of the Policy on Non-Sovereign Operations and a presentation by Management, most Board members commended Management for the quality of the document. Some Executive Directors pointed out the importance of the policy in enabling the Bank to attract additional resources for the continent and carry out more private sector development operations. They requested Management to support the development of financial centers and local financial markets in Africa with special attention to tax evasion and tax fraud risks. In this regards, some Members expressed the need to ensure that the NSO policy does not conflict with the practices and regulations in Regional Member Countries.Some Executive Directors requested Management to review some of the language in the body of the document and remove the reference to a potential analysis of Base Erosion and Profit Shifting (BEPS). Members questioned the procedure adopted for the approval of the NSO policy. Some felt that it is not within the prerogatives of the Board of Directors to decide on issues of domiciliation of the Bank’s investments. In this regard, they referred to the amendment of Article 14.1.c of the Agreement Establishing the Bank by the Governors (GCC) in 2000 to authorise equity participation in entities not situated in a regional member country. The Acting General Counsel explained that the involvement of the Governors was required at the time because the proposed amendment involved the introduction of new terms "to benefit a regional member country", which is not the case for the current proposal that is based on a purposive reading. At the end of the deliberations, the Board approved the Policy on Non-Sovereign Operations.