The Institute of Directors (loD) Ghana has emphasized the importance of appointing professional practitioners to serve on the boards of public institutions, urging the government to consider this approach.
According to the Institute, such a move would strengthen good corporate governance practices and enhance the performance of public institutions, particularly State-Owned Enterprises (SOEs).
Speaking at the prestigious 2023 loD investiture, awards, and dinner ceremony in Accra, Mr Rockson Dogbegah, the immediate past President of loD, highlighted the need to tap into the pool of highly skilled directors available to support SOEs, rather than relying solely on friends and political appointees.
He expressed concerns about the consistent poor performance of SOEs, attributing it, in part, to the lack of adherence to corporate governance principles.
Mr Dogbegah stated, “There are a lot of opportunities that are opened to us following the establishment of the appropriate corporate governance architecture in Ghana as a result of the intervention of loD and supported by all stakeholders,” and urged the government to leverage these resources effectively.
Supporting these sentiments, Mr Felix Addo, President of the Ghana Association of Restructuring and Insolvency, asserted that many appointed directors and leaders of companies attain their positions not based on merit but through personal connections and relationships. He emphasized the need to recommend trained directors to various boards to address the challenges faced by public institutions.
Addressing the new Governing Council, Mr Addo called for engagement with relevant stakeholders, including the State, and urged intensified campaigns to promote the use of the corporate governance code among both public and private sector organizations.
In her address as the new President of loD, Mrs Angela Carmen Appiah advised members to focus on building organizational resilience in the face of external and internal economic shocks. She emphasized the vision of the Institute to become the leading reference point for directorship and urged members to exemplify professionalism within their establishments.
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The call for the appointment of professional practitioners to public institution boards by the Institute of Directors Ghana reflects a growing recognition of the crucial role that good corporate governance plays in improving the performance and accountability of these entities. By emphasizing the need for merit-based appointments, the Institute aims to foster a culture of competence and professionalism in Ghana’s public sector.
