The business community has challenged the committee on the National Code on Corporate Governance to expedite the crafting of the document given the increase in the number of corporate governance deficiency cases on the local market.
Cases of corruption, lack of transparency and directors’ interference in the day-to-day running of both public and private entities have been cited as major reasons for the collapse of a number of companies on the local market.
Business analyst, Mr. Denford Mutashu, who expressed displeasure at the delays in the finalisation of the National Code on Corporate Governance, said the document is critical in ensuring that an entity operates viably through its individuals and various departments.
Businessman Malvern Chimutashu stressed the significance of corporate governance in directing and controlling the interests of shareholders and other stakeholders adding that the committee tasked to compile the document should expedite the process.
Zimbabwe’s private and public sectors have experienced a number of corporate scandals involving senior management, due to the absence of a binding corporate governance framework.
Among some of the cases include the abuse of depositors’ funds by Renaissance Bank, RTG boardroom squabble as well as corporate governance deficiency at the national airline, Air Zimbabwe.
It is hoped that the code will among other things contribute towards improved corporate performance and accountability in creating long-term shareholder value in the country.