NPA C-ADR

NPA Corporate ADR (C‑ADR): Addressing Corporate Criminal Misconduct

The National Prosecuting Authority’s (NPA) Corporate Alternative Dispute Resolution (C‑ADR) is a distinct mechanism designed to address corporate criminal offences, particularly corruption and economic crimes. It provides a structured pathway for companies to resolve matters directly with the NPA, potentially avoiding a formal conviction while ensuring accountability, remediation, and appropriate penalties.

A. The C‑ADR Process

  • Voluntary self‑reporting — The company proactively discloses its wrongdoing to the NPA.
  • NPA assessment — The NPA evaluates the disclosure, seriousness and scale of the conduct, cooperation by the company, and the supporting evidence.
  • Public‑interest consideration — The NPA weighs accountability and deterrence against the benefits of remediation and the resource demands of a full prosecution.
  • Negotiation and agreement — If suitable, the parties negotiate a C‑ADR agreement setting out the terms of resolution.
  • Remediation measures — The company undertakes corrective actions such as compliance programme upgrades, stronger governance and internal controls, ethics training, victim compensation, and disciplinary steps against culpable individuals.
  • Monitoring and compliance — The NPA oversees adherence to the agreement and remediation plan.

B. Outcomes of C‑ADR

  • Non‑prosecution if the company fully complies with all terms and conditions.
  • Prosecution if the company fails to comply or further wrongdoing is uncovered.

C. Advantages of C‑ADR

  • Potential to avoid a criminal conviction.
  • Emphasis on remediation and lasting compliance improvements.
  • Typically faster than criminal trial processes.
  • Penalties may be lower than those resulting from full prosecution.
  • Promotes proactive corporate accountability.
  • Conserves prosecutorial resources.

D. Limitations of C‑ADR

  • Requires self‑reporting and admission of wrongdoing.
  • Subject to NPA discretion on availability and terms.
  • Agreements may attract public scrutiny for transparency.
  • No guarantee of avoiding prosecution if terms are breached.
  • Limited to corporate crime contexts.
  • Eligibility depends on a complex assessment by the NPA.

E. Companies Tribunal ADR vs NPA C‑ADR (At a Glance)

Feature Companies Tribunal ADR NPA C‑ADR
Focus Civil/commercial disputes between companies Corporate criminal offences (e.g., corruption, economic crime)
Initiation Application by a company Company self‑reports wrongdoing to the NPA
Primary methods Mediation, arbitration Negotiation with remediation commitments
Typical outcomes Settlement agreement, arbitration award, tribunal order Non‑prosecution (on full compliance) or prosecution (on non‑compliance)
Nature of decision/outcome Binding civil decision or agreement Agreement influencing prosecutorial decision
Legal framework Companies Act, Arbitration Act, civil procedure NPA directives, Criminal Procedure Act, criminal law principles

How VDM Attorneys Can Assist

Navigating the NPA’s Corporate ADR process requires careful legal strategy, thorough disclosure, and a clear remediation plan. VDM Attorneys advise companies at every stage—from initial self-reporting and negotiations with the NPA to drafting compliance frameworks and ensuring agreements are properly implemented. Our goal is to help businesses resolve corporate misconduct matters responsibly, protect their reputation, and secure the best possible outcome under South African law.

Contact us.