An empty boardroom. FILE PHOTO | NMG
Greed among company directors is fast eroding public confidence
on ability of boards to manage local firms, discouraging capital
inflows.
A two-day symposium to formally launch the
KING IV Corporate Governance Report convened by Institute of Directors
(IODKenya) heard that most Kenyan and foreign investors were unwilling
to ...
commit their money following a streak of poor management practices that ruined once vibrant companies.
commit their money following a streak of poor management practices that ruined once vibrant companies.
“Uchumi Supermarkets , Mumias Suga,
Imperial and Chase Banks as well as Nakumatt are bad signs of Kenya’s
corporate governance. You are eroding public trust,” said Mr Charles
Muchene, who is a non-executive member and chairman at Barclays Bank
Kenya and East Africa Breweries Group respectively.
IODKenya
chairman Duncan Watta said this hurts the county’s stature as an
investment destination killing its ability to generate jobs, create
wealth for its people and the national economy.
In his
keynote address, Mr Muchene said directors must shun selfish interests
while ‘good directors’ must speak out with the domineering board members
urged to allow other directors to voice their concern over running of
the firms.
Africa Corporate Governance Senior
Consultant, Ansie Ramalho said boards could rewrite the old adage about
Africa as a continent full of poverty, disease and bad leadership
through actions that create an investment-friendly environment.
Mr
Muchene said regulatory agencies had done well to penalise company
directors of the affected companies but urged for severe penalties.
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