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The Institute of
Chartered Secretaries and Administrators of Nigeria (ICSAN) has said it
would prosecute its members who violate corporate governance rules in
the country. ICSAN, which membership comprises lawyers and
administrative managers, is the recognised professional body in Nigeria
dedicated to enhancing the status and practice of corporate governance
and public administration.

Moses Adeisa, the
institute president, said corporate governance was the important
challenge facing public and private businesses in the world today.

“Our members are always expected to adhere to the rules of corporate governance,” Mr. Adeisa said.

“Anyone of them
found wanting will be brought before the disciplinary committee, which
tries them to give them fair hearing. Anyone found wanting will be made
to face sanction of either a fine or other punishment under the law.”

He, however, said
the institute does not have the power of enforcement under the law, but
would rather subject its members to the disciplinary rules of the body.

Collaborating with regulators

He said the
institute was collaborating with regulatory authorities in the training
and retraining of their staff, in order to strengthen the enforcement
of corporate governance in the country.

In his address at
the institute’s 34th annual conference with the theme, ‘Managing Growth
in Challenging Times: The Significance of Corporate Governance’ held in
Lagos yesterday, Adeisa said the current economic recovery, which has
begun by government, must be made to work in order to build the
confidence of investors.

“The shakeup in the
financial sector is not really as a result of failure of corporate
governance, but it emphasises the need to enforce corporate governance
practices,” he said.

He said company
secretaries are expected to advise the board of directors on changes in
laws as it affects the operations of the sector.

“He must keep up
with changes in the laws, business, and finance and understand their
implications for better decision making,” he further said.

Cause of distress

Tunde Lemo, deputy
governor, banking and payment systems department of the Central Bank of
Nigeria (CBN), said poor corporate governance has been one of the
primary causes of all known distress in the Nigerian banking industry,
including the latest incidence which required the direct intervention
of the CBN in some banks last year.

“Banks’ reports to
Central Bank and investors were seldom accurate, thus depriving the
Central Bank of the right information to take timely and effective
regulatory decisions. Investors and other stakeholders were also misled
by this distorted information supplied by the banks,” Mr. Lemo said.

In his keynote address, Mr. Lemo said that a safe and sound system is predicated on good corporate governance practices.

“The achievement of
vision and mission of your respective organisations would remain a
mirage without good corporate governance. The various professional
bodies must promote and enforce ethical behavior that will reinforce
strong corporate governance practices,” he said.

Mr. Lemo added that
instituting corporate governance was important for private sector
companies, as well as public sector firms where it has begun to receive
increased attention. “This is particularly the case when countries are
attempting to curb widespread corruption within the public sector, or
when they are preparing public enterprises for privatisation. In either
scenario, sound corporate governance helps to ensure that the public
gets fair return on their national assets,” he added.

George Oguntade, a
retired Supreme Court justice, who chaired the conference, observed
that poor corporate governance was the foundation for corrupt
practices.

“There is huge unemployment; growth is a mirage in Nigeria due to the problem of corruption,” Mr. Oguntade said.

“Our educational
system is deeply troubled. We worry everyday whether we can survive as
a nation. Put bluntly, this country is in a state of self doubt,” he
added.

He said Nigerians must begin to consider the negative influence of corruption in order to curb the menace.