Ghanaian lawyer and corporate governance consultant, Robert Nii Arday Clegg, has launched a book, that uncovers the foundational flops of the recent banking sector crises.
In his new book, the author states that out-of-date corporate governance systems and lack of adequate information provided to stakeholders in the collapsed companies, are reasons for the recent crises in the banking sector.
Speaking at the launch of his new book titled ‘Corporate Governance: The Boardroom, The Bottom Line & Beyond’, Mr Clegg said many people in the banking sector crises, took risks without calculation.
“People are doing investments and they don’t know what’s happening. The problem is, there was a lack of information. People were taking risks without calculating. People were investing in people’s financial statements they could not read because they could not understand it,” he said.
Government’s reforms in the sector began in August 2017 and have enforced corrective legislations on 23 savings and loans companies, 347 microfinance companies and 39 non-bank financial micro-credit companies.
Addressed in his book, he also believes that the collapse of these financial institutions is a consequence of the banking sector’s refusal to update and upgrade the sector like the United States and Europe have done.
“There are many developments around the world. We waited and we sat back and it’s all happening in the banking sector,” he said.
His book, ‘Corporate Governance: The Boardroom, The Bottom Line & Beyond’ delves into the Ghanaian context, taking laws and provisions made to find out how the banking sector has not come full circle and why.