First Deputy Governor of the Bank of Ghana, Millison Narh, has called on financial institutions in the country to adopt and implement effective supervisory frameworks to curb the widespread corporate scandals in the sector and its subsequent effects on the banking public.
Speaking at the launch of the International Finance Corporation’s Corporate Governance Programme (CGP) in Accra, he advised banks to imbibe sound corporate governance practices to promote discipline and check malfeasance.
“The current widespread corporate scandals and failures in the banking sector bring into sharp focus the need for banks to improve their corporate governance practices and adopt effective corporate governance principles that will be thoroughly embedded and consistently implemented.
“The corporate governance principles of integrity, transparency, accountability, fairness, probity and responsibility which are the main drivers of most corporate governance codes and frameworks that have been adopted internationally must be enforced,” he said.
The Corporate Governance Programme seeks to strengthen the foundation of long-term economic performance to generate growth opportunities for small and medium enterprises and create more job opportunities.
It is also expected to improve corporate governance practices cross markets within the West African sub-region and engender good corporate governance practices in the financial system and corporate businesses as a whole.
Swiss Ambassador, Gerhard Brugger, said the programmes, which is enshrined in Swiss State Secretariat for Economic Affairs, is considered at the heart of economic stability and growth.
He reiterated the need for the country to take advantage of the programme as governance in both the private and the public sector still remains a challenge.
“It is obvious that it is not enough to have a good business idea. Investors care deeply about corporate governance, making it a critical factor in investment decisions,” he said.
By Patrick Paintsil | B&FT Online | Ghana