An awareness session on the Scorecard Awareness Report 2022 was held, today at the FSC House in Ebène, in the presence of the Minister of Financial Services and Good Governance, Mr Soomilduth Bholah.
The Chair of the National Committee on Corporate Governance (NCCG), Ms Aruna Radhakeesoon; the Chief Executive of the Stock Exchange of Mauritius, Mr Sunil Benimadhu; and other captains of the industry were also present.
The Scorecard is a tool to measure in quantifiable terms the extent of compliance of CG practices with the indicators set out in the Scorecard by analysing the public disclosures and explanations given by organisations in their annual reports and on their websites. The Scorecard is divided into three key parts - Board Effectiveness, Audit Oversight and Effectiveness, and Relations with Stakeholders/Shareholders, Sustainability and Inclusiveness and consists of 66 Key Performance Indicators. It highlights areas where the quality of disclosures can be enhanced and therefore underscores the need for continuous vigilance, training, and efforts to refine corporate governance practices.
In his keynote address, Minister Bholah recalled that the vision of the Ministry of Financial Services and Good Governance is to position Mauritius as a jurisdiction that is transparent and operates at a very high standard. This vision, he added, is at the core of its commitment to fostering a robust International Financial Centre.
Speaking about good governance, he said that the Ministry is actively engaged in promoting and enforcing good governance practices to safeguard national values and eradicate fraud, corruption, malpractices, and irregularities in all aspects of public life. According to him, good governance brings transparency, transparency brings trust, trust brings investments, and investments generate growth and economic development.
He highlighted that the dual focus on financial services and good governance enables the Ministry to undertake strategic policy decisions, address challenges holistically, fostering an environment where economic growth is not only robust but also sustainable. He recalled that the financial services sector is the first contributor to our GDP with a growth of 4.4 percent in 2023.
Furthermore, he underpinned that the success of the financial sector is inherently tied to the ethical practices and transparency that characterise good governance. The governance aspect, he indicated, is implemented through two main bodies under the purview of the Ministry, namely the Office of Public Sector Governance and the NCCG.
The Office of Public Sector Governance is tasked with implementing good governance standards within the public sector, while the NCCG issues standards for corporate governance in the private sector, he said.
As regards the NCCG, Minister Bholah enumerated some of the initiatives implemented by the National Committee, including: reviewing of the 2016 Corporate Governance Code, and launching of the Corporate Governance Scorecard for Mauritius in October 2021. The NCCG also received the Excellence Award for Corporate Governance 2023.
Minister Bholah also dwelt on the Scorecard and highlighted that it is a tool that has been developed using global principles and internationally recognised good practices such as the OECD Principles of corporate governance. Acknowledging that the Scorecard also plays a useful role in promoting good corporate governance, spurring discussion on the practices that are best suited for a company, he added that this can create value for both companies as well as potential investors.
He expressed satisfaction that Mauritius is among the very few countries in the world which measures progress in corporate governance practices in a structured, objective and quantifiable manner. The Corporate Governance Scorecard, he said, goes a very long way in strengthening the competitiveness of Mauritius and is one of our core competencies to consolidate our reputation as an international financial centre of excellence with strong institutions and professionals of high calibre.
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According to Minister Bholah, Mauritius will continue to play an important role in shaping the future and economic prosperity of Africa. The country, he underlined, is leading by example and Mauritius has become an inspiration for its peers in the region. To that end, he urged boards to set the tone for the appropriate level of transparency and disclosure as well as inculcate the right values, and cultivate the right culture within their organisations.
Second Scorecard Assessment
The second Scorecard assessment, made public on 30 October 2023, was open to Public Interest Entities as defined in the First Schedule of the Financial Reporting Act 2004. Twenty-seven organisations voluntarily took part in the Scorecard exercise. The report strengthens the business community's confidence in its corporate governance journey. Progress is evident with an average CG weighted Score of 67.5%, compared to 54% in 2021.
