By BUUMBA CHIMBULU
IT is imperative to set new benchmarks on corporate governance by the Government given the urgent need to restructure the Zambian economy.
Doing so will ensure enlisting of competent board members who were critical in negotiating external funds, according Bridges Limited Managing Consultant Chibamba Kanyama.
Mr Kanyama recalled that in the recent past, board of directors were sufficiently trained in corporate governance but still failed to perform to expectation largely because Ministers who appointed them did not adhere to acceptable benchmarks of good corporate governance in the Board selection process.
“The Ministers need to set new standards of governance for these institutions in order for them to be fully aligned to the vision of Government.
“Ministers need to move away from the most recent experiences where many Board directors aided unethical practices such as corruption through excessive political patronage, incompetence, and general lack of the duty of care,” he said in a statement.
Mr Kanyama guided that the appointments to the Boards should not be a reward to politically connected individuals who had supported the party.
This, he said, was because competent and well-functioning boards were a means for the access of external funding and low cost capital for organisations, especially parastatals.
Mr Kanyama indicated that competent boards improved the operational performance of the entities so that they were regular contributors of revenues to the treasury through dividends
“They increase the valuation of these bodies so that at least 10 parastatals should be listed on the Lusaka Stock Exchange in the next five years.
“They also reduce the risk of corporate crises and scandals that are yet to emerge in some of these quasi government institutions,” he said.
Mr Kanyama stated that this would work well for ministers under the New Dawn Government to fully appraise themselves on corporate governance procedures and practices before they reconstituted boards of statutory and other quasi-government bodies.
Expert tips govt over corporate governance
By BUUMBA CHIMBULU
IT is imperative to set new benchmarks on corporate governance by the Government given the urgent need to restructure the Zambian economy.
Doing so will ensure enlisting of competent board members who were critical in negotiating external funds, according Bridges Limited Managing Consultant Chibamba Kanyama.
Mr Kanyama recalled that in the recent past, board of directors were sufficiently trained in corporate governance but still failed to perform to expectation largely because Ministers who appointed them did not adhere to acceptable benchmarks of good corporate governance in the Board selection process.
“The Ministers need to set new standards of governance for these institutions in order for them to be fully aligned to the vision of Government.
“Ministers need to move away from the most recent experiences where many Board directors aided unethical practices such as corruption through excessive political patronage, incompetence, and general lack of the duty of care,” he said in a statement.
Mr Kanyama guided that the appointments to the Boards should not be a reward to politically connected individuals who had supported the party.
This, he said, was because competent and well-functioning boards were a means for the access of external funding and low cost capital for organisations, especially parastatals.
Mr Kanyama indicated that competent boards improved the operational performance of the entities so that they were regular contributors of revenues to the treasury through dividends
“They increase the valuation of these bodies so that at least 10 parastatals should be listed on the Lusaka Stock Exchange in the next five years.
“They also reduce the risk of corporate crises and scandals that are yet to emerge in some of these quasi government institutions,” he said.
Mr Kanyama stated that this would work well for ministers under the New Dawn Government to fully appraise themselves on corporate governance procedures and practices before they reconstituted boards of statutory and other quasi-government bodies.
