Former Executive Vice President of Unilever Ghana and Nigeria, Yaw Nsarkoh has raised serious Corporate Governance issues with the manner President John Dramani Mahama is appointing heads of state of institutions.
The business and thought leader says appointing Chief Executive Officers (CEOs) and Managing Directors (MDs) of state-owned and controlled institutions before the proper constitution of boards undermines the independence and the autonomy of these governing boards.
President Mahama, as part of efforts to form his government, has already started appointing persons to head state institutions. State entities such as the Ghana Cocoa Board, Ghana National Petroleum Corporation, National Petroleum Authority, Ghana Shippers Authority, and Petroleum Commission, among others, have been appointed acting heads without any boards in place.
Per the conventional corporate governance principles, it is the responsibility of a properly constituted board of institutions to hire, review, and if necessary fire CEOs or MDs based on performance and conduct. Without boards, the current ongoing appointments are seen as a smack on corporate governance principles.
Remarking on the development in a social media post cited by The High Street Journal, Yaw Nsarkoh is of the view that this practice raises concerns about the true authority and independence of the boards.
“The optics of CEOs being appointed before boards, are not optimal. De facto they suggest a lack of autonomy and absence of independence of the boards to be formed,” Yaw Nsarkoh shared.
In agreeing with the position of Yaw Nsarkoh, Executive Director of Ghana Center for Democratic Development and a lawyer, Prof. H. Kwasi Prempeh indicated this kind of “race-to-the-bottom” approach is inimical to the transformative change the state is yearning for.
He therefore noted that he cannot fathom why despite the weaknesses of such an approach it still flourishes in Ghana’s politics.
“So obvious, yet it persists! Our race-to-the-bottom politics is the biggest obstacle to change and transformation,” he also remarked.
Yaw Nsarkoh’s observation, validated by Prof. H. Kwasi Prempeh is a wake-up call for the proper practice of corporate governance in Ghana. If the government continues to appoint CEOs before forming boards – this erodes accountability, fosters political interference, and weakens corporate governance structures.
For Ghana to build strong, well-governed institutions, it must ensure that boards are independent, empowered, and properly constituted before CEOs take office. The big question is: Will this change happen, or will the status quo remain?
