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Expert questions BoG’s corporate governance practice

Expert questions BoG’s corporate governance practice
Source: Ghana | Ebenezer Sabutey | JoyBusiness
Date: 27-02-2019 Time: 10:02:43:am

Corporate Governance Expert is calling for a review of the mandate of the Governor of the Bank of Ghana to restrain him from chairing the Board of the Bank and other committees like the Monetary Policy Committee

According to Professor John Bright Aheto, this will strengthen corporate governance rules in the banking and financial sector.

He spoke to JoyBusuiness after addressing members of the Institute of Directors Ghana on Corporate Governance.

“It is not the best, the central bank themselves are not doing the right thing because how can the governor be the chairman of all the committees and boards of the bank and tell us it is corporate governance” he questions.

The Governor of the BoG is currently the chairman of the Monetary Policy Committee of the Bank as well as the chairman of the board of directors.

A situation many financial players have described as inappropriate since the Governor does not report to anybody except the President.

The BoG, however, launched the corporate governance code for banks and financial sector institutions last year to enhance the credibility of the sector.

The Governance Expert believes the law can be changed to make the governor a member of the board instead of being the Chairman.

“I think that part of the constitution must be looked at again because it doesn’t make the governor answerable to anyone except the president who appoints him. He must not be seen as working for the president alone but a board and thereby the people of Ghana,” Professor Aheto noted.

President of the Institute of Directors Ghana, Rockson Dogbegah urged the Bank of Ghana to ensure full implementation of the corporate governance code issued to the commercial banks.

Members of the Institute called on the media to support the quest by the private sector to improve corporate governance in the various institutions in the country.