The President of the Institute of Directors, Rockson Kwesi Dogbegah, says the collapse of some financial institutions in the country was simply as a result of mismanagement.
Speaking at the Annual General Meeting of the Institute of Human Resource Practitioners, Mr. Dogbegah said there’s the need for Ghanaian managers to have a change of mindset in the running of companies.
“We have all been witnesses to the effect of some corporate negligence which has contributed to the collapse of some banks and other sectors of the economy. To cure this, there is a need for a renewed mindset for board membership which has become a status symbol and an opportunity to create wealth for individual board members other than to provide service”.
He further urged Management and Board Members to be responsible towards their duties to prevent future occurrences emphasizing on their integrity.
“Management is responsible for the operationalization of these companies. This means management is accountable to the board while the board is accountable to the shareholders and stakeholders,” he said.
“Integrity in cooperate governance is about adherence to strict ethical and moral standards notwithstanding any form of compulsion on others to act otherwise and also put the interest of the organization above any individuals and ensuring that the interest of the shareholders and stakeholders are protected,” he added.
Mr. Dogbegah made these comments in connection with role Human Resource Management play in sustaining the progress of a company.
Financial Sector Clean-Up
The financial sector clean-up which started during the Akufo-Addo administration in August 2017, led to the collapse of nine universal banks, 347 microfinance companies, 39 microcredit companies or money lenders, 15 savings and loans companies, eight finance house companies, and two non-bank financial institutions over issues of maintaining the minimum capital requirement.
The most recent occurred with the Securities and Exchange Commission (SEC) revoking the licenses of some 53 Fund Management Companies.
The fund management companies who have lost their licenses were said to be managing a customer base of about 56,000 whose funds run in excess of GHS 8 billion out of the total GHc25 billion of the entire securities sector.