The Institute of Directors Ghana is advocating for the amendment of the Presidential Transitional Act to allow board members and chief executives of key government institutions stay in office after a change of government.

This the Institute believes will result in a good corporate governance practice in the public sector.

President of the Institute, Rockson Dogbegah made the call at the Corporate Governance Conference in Accra under the theme: ‘enhancing and sustaining good corporate governance, the role of stakeholders.’ 

“We think that in the practice of corporate governance, the current state of the law does not make provision for a succession plan for state enterprises and businesses and there is the need for an amendment. We believe the President is a good corporate governance practitioner with the way he is handling the Economic Management of the country.”

Mr Dogbega added, “The issue of corporate governance is very important and critical because whatever goes on in the public sector has a way into the private sector. Secondly, we want the appointment of Chief Executives to be a sole preserve of the Board of Director’s and not by partisan like the way we see it.”

The 2019 Corporate Governance Conference is focusing on issues relating to the management of state and private institutions with a social impact on individuals.

According to the Institute, the section in the Ghana Presidential Transition act which compels all board of governors to dissolve due to the change in government is not a good corporate governance practice.

Speaking on behalf of President Akufo Addo, Minister for Business Development, Mohammed Awal emphasized the need for Small Medium Enterprises to adhere to corporate governance rules in order to sustain their businesses.

“Let me say this very important issue at this conference, the nature of SMEs we run in Africa is such that they’re on family bases and doesn’t take the issue of corporate governance serious. Please, I will urge members of the Institute here to practice the corporate governance rules to the latter and ensure that our SMEs practice same in order to be sustainable and be able to create more jobs.”

“His Excellency the President is keen in creating the enabling environment for businesses to thrive through the introduction of many business initiatives and regulatory reforms. The government is committed to corporate governance and must be supported,” he added.

The conference brought together Director’s from across 19 African countries and members of the Institute of Directors Ghana.

Chairman of the National Development Planning Commission, Professor Stephen Adei also made a call for a thorough review of the single spine salary structure in the public sector.

According to him, the current state of the policy is having a negative impact on the country’s revenue which can be avoided.

Professor Adei suggested that government must form a bipartisan committee with the inclusion of Labour to review the policy to be purged with productivity.