As a follow up to an International Conference organized by the Institute of Directors Ghana (IoD-Gh) in Collaboration with African Corporate Governance Network (ACGN) made up of 19 African Countries, and International Finance Corporation (IFC) on the 7th May, 2019, the President of the Republic of Ghana, His Excellency Nana Addo Dankwa Akuffo Addo granted audience to the leadership of the Institute of Directors Ghana, ACGN and IFC to discuss the fallouts from the conference.
The twenty-member delegation was led by Mr Rockson Kwesi Dogbegah, the President of the Institute of Directors Ghana. Mr Meshack Joram, Chairman of African Corporate Governance Network spoke on behalf of ACGN and called for the support of the President of Ghana to help ACGN set up a Secretariat in Ghana whiles Mr Joseph Akwesi Kumah, the Senior Country Officer of IFC World Bank Group further emphasized the need for a national agenda for the support of the SMEs in Ghana.
In their address, the delegation congratulated the President for his numerous interventions in improving the corporate governance landscape in Ghana. Some of the latest of such interventions is the accenting to the establishment of the State Interests and Governance Authority Bill and the passage of the Companies Bill 2019. “We see these as your continuous support and commitment in promoting sound corporate governance in the country”, added by the President of the Institute of Directors Ghana.
The Institute of Directors Ghana pledged its support to the President’s efforts by availing its services to complimenting Government’s effort in promoting the culture of good corporate governance in Ghana through training, policy improvements, advocacy, research and advisory services.
The President of IoD-Gh further stated that the Institute has a register of trained and certified directors who undergo continuous and professional development on an annual basis which can be availed for the selection and appointment of credible and competent directors who could serve on statutory boards. To this effect, he specifically requested of the President that the Institute is given the opportunity to recommend directors from its register to serve on the governing board of the newly created State Interests and Governance Authority Board and all other strategic public entity boards in the country.
Whiles the delegation acknowledged the unflinching support of the President to improving the governance landscape in Ghana, they however respectfully drew the President’s attention to some policy issues which needed an equal urgent attention. Some of these included:
1. The need to legislate compulsory training in leadership and corporate governance for people who serve on public corporate boards. This will enhance the quality of outputs of these boards which will lead to achieving the desired results from public boards. This is the practice in countries such as South Africa, Mauritius, New Zealand, Australia and India.
To this His Excellency replied saying, “This is a very laudable idea and government will give it a serious thought.”
2. The compelling need to take a second critical look at the Amended Presidential Transitional Act (845) as amended 2016 which allows for automatic dissolution of public boards. This defeats good corporate governance principles and succession planning.
To this His Excellency replied saying, “This is a very controversial area that needs a critical discussion and further dialogue. All governments have their philosophies and it may be difficult to keep old boards in place who may not be aligned to the agenda of a new government.”
3. The Appointment of Chief Executive Officers (CEOs) to State Owned Enterprises (SOEs) must be the preserve of governing boards. This will cure the frequent strained relationships between Board Chairmen and CEOs. There is the need to amend our laws to support this intervention.
4. The need for a national dialogue on the survival of Small Medium Enterprises which the Institute is prepared to lead. The Institute is currently developing a mentoring certification scheme to certify mentors to provide the appropriate mentoring to cure the anomaly.
To this His Excellency replied saying, “This is a very critical concern for government and it will throw its weight behind the efforts of the Institute of Directors Ghana to lead the agenda. The SMEs form about 90% of the private sector but unfortunately its only a few that are able to sustain its operations. This is a call in the right direction. And this is what informed government to create Business Development Ministry to promote this agenda.”
5. The indulgence of government to assist the Institute to get the appropriate legislative backing to regulate directorship in Ghana. This will enable the Institute to enforce the appropriate principles, practices and codes of ethics in promoting the culture of good corporate governance in Ghana. Most jurisdictions have this in place, for example, the Institute of Kenya has a bill currently under consideration in Kenya to this effect.
To this His Excellency replied saying, “This is very good call and its worth pursuing. Government will give it a thought.”
6. The wish of the African Corporate Governance Forum for government to provide the facilities needed to establish a strong presence in Ghana to facilitate an Africa agenda to promote leadership and good corporate governance. This will be a lasting legacy of the President in institutionalizing and promoting sound leadership and corporate governance in Africa. To this end, we wish to humbly appeal to you to provide the facilities needed to house and operate the African Centre for Leadership and Corporate Governance in Ghana. This is akin to the African University Centre which is currently housed in facilities provided by the Government of Ghana on the land of University of Ghana.
The delegation further solicited for government’s support saying, “Your Excellency, we wish to crave your support in our efforts to discharge our mandate through the recognition and the sustainable use of our services as a professional institute.”
