Ashitey urges business community to adopt good governance

Tema, Feb 13, GNA- A Minister of State on Thursday called on the Ghanaian business community to adopt good corporate governance practices for progress in order to compete successfully in the increasing competitive global economy.

Mr Ishmael Ashitey, Minister of Trade, Industry and President's Special Initiatives (PSIs) who made the call at Tema said the adoption of the practice would ensure transparency in their business transaction and operate more profitably.

He was addressing the Tema branch of the Ghana0 National Chamber of Commerce and Industry (GNCCI) at a seminar, which had "Good corporate governance for profitable business" as the theme.

To achieve successes, he advised against businesses not opening up to public scrutiny, by providing information on their operations to guide policy formulation and programme design since such tendencies do not benefit enterprises neither the system.

Mr Ashitey indicated that efforts were underway to get the Small and Medium Scale Enterprises (SMSE) listed on the Ghana Stock Exchange (GSE).

He said and their chances of getting the opportunity would be slim and therefore would not benefit from tax reduction from 30 to 25 percent as contained in the 2004 budget statement if they were not listed. There was the need, therefore for SMSE to appoint a Board of Directors with the requisite expertise to provide policy and strategic direction for their development and growth.

He said the government has over the three years taken bold economic policy decisions and introduced a number of programmes/projects and entreated the private sector to take advantage of the enabling environment created to transact sound businesses by observing corporate governance to ensure rapid economic growth.

"We have achieved reasonable successes in our endeavours by bringing down inflation/interest rate, ensured relative stability of the local currency, and improved infrastructure among others".

This, the Minister said, was manifested in this year's budget which he described as "business friendly", adding "we have seen and benefited from the fruits of the practice of good governance at the political and socio-economic levels".

In a speech read for him, Mr Yaw Osafo-Maafo, Minister of Finance and Economic Planning described the 2004 budget statement as the best as taxes have been reduced as well as the institution of other incentives to create the enabling environment for businesses to thrive.

He said with good economic policies, the government has turned the fortunes of the economy and urged the business community to embrace this bold initiative by exhibiting commitment and dedication to transact business under sound and harmonious atmosphere.

Presenting a paper on "Corporate Governance-Critical Role for Board of Directors, Ms Elsie Addo, Managing Consultant of Lawfield stressed the importance for businesses to have periodic review of their performance to ensure that they were on track.

She suggested the constant evaluation of the board members so that they were not corrupted.

Mr W. K. Krofah, national treasurer of the GNCCI gave the assurance of the private sector to accept the challenge to promote good governance and sound economic management in the country. He noted that sound corporate governance encourages the efficient use of resources and provides for accountability for the stewardship and safeguard corruption and mismanagement while promoting fundamental democratic society.

Mr Krofah said the seminar offered the opportunity to the private/public sector to find solutions to the weakened corporate governance structure which "has resulted in financial and other management problems in a lot of organisations and companies".