adminBusiness Correspondent
CBZ Holdings has won the trophy for the Best Governed Company on the Zimbabwe Stock Exchange for the second year running, while NMB Bank was awarded the trophy for the Best Governed Banking Institution. The Zimbabwe Investment Authority won the inaugural State Enterprises and Parastatals Best Corporate Governance Practices
trophy.
The awards were presented at the third annual Institute of Chartered Secretaries and Administrators in Zimbabwe (ICSAZ) Excellence in Corporate Governance Awards ceremony at Cresta Lodge in Harare on November 12.
Other corporate governance award winners included ZimTrade and the Infrastructure Development Bank of Zimbabwe, which won second and third place respectively in the State Enterprises and Parastatals Best Corporate Governance Practices category.
This is the first year that there has been an award category for state enterprises, parastatals and grant-aided institutions. Dairiboard Holdings came second and Delta Corporation third in the Best Governed Company category, while in the Best Governed Banking Institution category CBZ Bank came second and FBC Bank third.
In the ZSE listed companies’ awards categories, CBZ Holdings also won the Best Board Practices Award. British American Tobacco Zimbabwe came second in this category, while Delta Corporation came third. Dairibord Holdings won the Best Stakeholder Practices and Sustainability Reporting Award, withTurnall Holdings coming second in this category and Lafarge Cement Zimbabwe third.
The Best Shareholder Treatment award went to African Distillers, while NMBZ Holdings came second and Nicoz Diamond thirdin this category.
In the Banking Institutions award categories, NMB Bank won not only the overall Best Banking Corporate Governance Practices trophy but the top awards in two of the three other categories for the banking sector, namely the Best Banking Governance Practices Award and the Best Banking Risk Management Practices Award.
Second place in the Best Banking Governance Practices category went to CBZ Bank while Stanbic Bank came third in this category. FBC Bank came second in the Best Banking Risk Management Practices category with BancABC taking third position. The Best Banking Internal Audit Disclosures Award went to CABS, while NMB Bank came second in this category and FBC Bank came third.
The Excellence in Corporate Governance Awards were initiated in 2013 by ICSAZas a means of promoting good corporate governance. The first awards in 2013 were just for companies listed on the Zimbabwe Stock Exchange. In 2014, awards were added for the banking sector. This year awards were introduced for State Enterprises and Parastatals. ICSAZ president Lovemore Kadenge, in his address at the awards ceremony, said the institute hoped to expand the awards to eventually include all sectors of the economy. “We expect the awards in future to cover sectors like local authorities, the insurance sector, SMEs and NGOs,” he said.
Emphasising the important role that corporate governance plays in attracting foreign direct investments, he said investors were likelyto withhold their investment funds from countries in which corporations do not practise good corporate governance, because the companies’ operations would lack transparency, accountability, fairness and all the other tenets of good corporate governance.
Countries from which resources have been withheld tend to suffer through lack of economic growth and low levels of living standards for the general populace, he said. Vice-President PhelekezelaMphoko, in a speech read on his behalf by Industrial Development Corporation Zimbabwe chief financial controller Peter Madara, commended ICSAZ for coming up with the awards.
“This initiative resonates well with government’s aspirations and efforts to promote good corporate governance in Zimbabwe,”he said. “It is critical to note that inculcating a culture of good corporate governance and principles and zero tolerance for corruption in the public and private sectors is key to sustainable economic development,” the Vice-President said.
He added that principles of good corporate governance, such as accountability and transparency, could not only improve operating performance but also reduce levels of corruption.
“The accountability of corporate boards to shareholders, particularly outside shareholders, reduces the incidence of bribery. “An independent and competent corporate board that truly represents the interests of shareholders can also prevent the opportunistic behaviours of management. “While managers of firms might be tempted by the immediate gains from bribery, it is in the interest of the shareholders not to be involved in bribery activities.
“Strong corporate boards also make it more credible for managers to commit to a no bribe policy when dealing with public officials or other business people who demand a bribe payment. “An independent and competent corporate board limits the firm’s ability to pay a bribe and can actually boost the bargaining power of the managers in dealing with corrupt officials,” he added.
Online Reporter