23 November 2012

Zambia: Blacklist Directors - IOD

A REPORT commissioned by the Institute of Directors of Zambia (IoD) has recommended that directors who have served on boards of companies which have either collapsed or gone into liquidation should be blacklisted.

The report which was presented to a Financial Sector Development Plan (FSDP) Regional workshop in Ndola yesterday for public discussions, states that some players in the financial sector wants the IoD and the Central Bank to run a joint directory showing names of directors.The directory should show names of directors who have served on boards of companies, which have either collapsed or gone into liquidation.

"The directory shall therefore be accessible by the Bank of Zambia (BoZ) for use during inspection," the report reads in part.

The report said there was need for the BoZ and the IoD to conduct a corporate governance audit of all commercial banks and leasing companies in the country.

And BoZ regional director Chisha Mwanakatwe called on key players in the financial sector to ensure that the country was no longer confronted with a fragile financial system on account of poor board and management oversight.

Mr Mwanakatwe said in Ndola yesterday that despite having made demonstrable steps in corporate governance, Zambia continued to face challenges in this area like many other developing economies.

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