The Institute of Directors Ghana has bemoaned the practice whereby the Chief Executive of state owned institutions are appointed by the President, ahead of the formation of their respective boards.
According to its President, Rockson Dogbegah, such decision defeats the purpose of corporate governance practice since the Board of Directors is the focal point of the existence of these institutions.
Mr. Dogbegah was speaking at the launch of the week-long celebration of the Institute of Directors Ghana.
Mr. Dogbegah urged directors to live up to expectations to ensure business sustainability despite the negative impact of covid-19 pandemic.
“Ghana has a practice where CEOs of state owned enterprises are appointed ahead of the formation of their respective boards, charged with the responsibility to direct the affairs of such enterprises. This tradition defeats the principles and practices of good corporate governance. I would like to bring to the attention of presidential hopefuls, in the event that they are elected into power, we would like to see best practice at play,” he said.
“This will ensure corporate boards are appointed into office with the mandate to manage the entities they have been appointed to serve. All should use their powers to search and appoint suitable CEOs who will be charged with the responsibility to manage the state owned enterprises on a day to day basis.”
He further stated that the failure of some financial institutions could be associated with leadership failures hence the need to ensure competent directorship.
“Directors continue to operate in complex, dynamic and uncertain environments to achieve their goals. The recent corporate governance related leadership failures in some financial institutions in Ghana with corresponding huge costs both at the micro and macro levels confirm the need for sustainable, sound corporate governance practices anchored by competent directorship,” he pointed out.
“In an uncertain covid-19 pandemic environment, directors are to up their game to ensure appropriate strategic interventions, business continuity and sustainability”, he further added.
The theme for this year’s celebrations is “Good Corporate Governance and Leadership, an Essential Framework for the Management of Uncertainties”.
Source: Charles Nixon Yeboah