‘A new emphasis on strengthening corporate governance is required’ – Dr Addison
The Central Bank has said a new emphasis on strengthening corporate governance of companies in the country is required as companies emerge from the impacts of the Covid-19 pandemic.
The strengthening of corporate governance structure of companies the Central Bank notes, is to help corporate Ghana and public institutions deliver on desired outcomes for all stakeholder groups – shareholders, depositors, investors – as effects of poor corporate governance tend to severely affect stakeholder groups.
In a speech read on his behalf, the Governor of the Bank of Ghana (BoG), at the launch of the Institute of Directors’ Ghana Initiative for the Development of a National Corporate Governance Code, Dr Ernest Addison, noted good corporate governance is the bedrock of any modern market economy asserting corporate governance in building strong institutions, communities, and economies, and helping to avoid the collapse of businesses cannot be overemphasized.
At the launch, the Governor called for strong corporate governance, particularly among public sector institutions.
“The Bank of Ghana recognizes that good corporate governance in the banking sector alone cannot promote robust and sustainable economic growth for all. Strong governance in all of corporate Ghana and indeed in public sector institutions as well, is necessary for promoting the socio-economic transformation we all desire for Ghana. The extent to which the banking sector can continue to lend to businesses is directly related to the extent to which corporate Ghana is governed.
“Poorly-run businesses are the bane of banks’ non-performing loan portfolios, which threaten the viability of the banking system and indeed feeds back into stagnated economic growth as banks shy away from extending more credit. It is therefore in everyone’s interest that we promote best practices in corporate governance nationally to help build strong institutions, industries, and ultimately a strong, inclusive and sustainable economy, and a strong nation,” remarked the Second Deputy Governor, Elsie Awadzi on behalf of the governor.
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Speaking further on behalf of the Governor, Mrs Elsie Awadzi noted that the case for a National Corporate Governance Code is clear, asserting that there are examples of how national corporate codes have helped to shape the emergence of viable and world-class businesses fuelled by ethical and effective leadership across corporate and public sectors.
“The King’s Code on Corporate Governance now in its fourth reiteration, is a good example of how a national code unites a people around clear values and purpose in pursuing legitimate business goals in a way that advances the common good. Other examples are found in the UK, Mauritius, Zimbabwe, just to mention a few.
“It is our hope that work on Ghana’s National Corporate Governance Code will be inclusive, authentic to our best values, and draw on work done or being done by stakeholders including regulators like the Bank of Ghana, the Securities and Exchange Commission, the Ghana Stock Exchange, and private sector initiatives such as the Extractive Industries Transparency Initiative, and others,” she remarked.
