Transparent Corporate governance is key to success - Nana

Accra, (Greater Accra) 1st July '99 The rapid global changes in world economy calls for the total understanding of the respective roles of government, the public and private sectors, Nana Wereko Ampem II, Omanhene of Amanokrom, said in Accra on Wednesday. Launching the Institute of Directors - Ghana (IoD), a body of corporate directors that seeks to promote corporate governance, Nana Wereko Ampem said there is the need to put in place discipline in the management of the economy to attract more investment.

He said Ghana's Vision 2020, which he described as "a well thought-out document" if well implemented, could lead the country to the goals it has set out in the document. "But, it is a fact that without a large inflow of direct private investment the vision will remain unfulfilled.

"It will therefore be necessary to ensure that conditions - social, political and economic - are provided for the attraction of both domestic and foreign direct capital into the economy." Nana Wereko Ampem said good governance of public corporations and private companies, which have become a subject of global concern and interest are the key to accessing global capital markets.

"Transparent corporate governance also provides investors with a clear map of their rights in relation to the companies in which they invest." This, the Omanhene said, should be pursued with integrity and transparency so as to win the confidence of society. Nana Wereko Ampem said in other parts of the world, such institutes of directors have played important roles in the advancement and growth of their economies. Those institutes are consulted on a number of relevant issues by their governments and corporate bodies.

"...It is only the actions of the institute which will determine the respect and credibility that it will command in the society and hence its effectiveness as a contributing factor to the nation's economic advancement," he said. The IoD, he said, has come to fill an important vacuum by bridging the gap between private-public sector initiatives to enhance productivity. The President of the Council of the IoD, Mr Frank Ocran said the Institute was established to promote good corporate governance for the benefit of stakeholders.

He said the Institute would ensure a strong relationship between the board and shareholders, board and top management, boards and regulators as well as auditors.

The Institute which was formed barely a year ago with about 98 members from the public and private organisations hopes to establish good corporate governance in the country as a means to achieve global standards of business efficiency. Mr Ato Ampiah, Managing Director of Auto Crystal, who chaired the function said the dynamism of global economic environment is driven on human capital and urged the Institute to put more emphasis on the training of its members.