Capital Markets Authority Chief Executive Officer Japheth Katto
Organisations must embrace good corporate governance or risk failure, according to Mr Japheth Katto, the Capital Markets Authority chief executive officer.
Speaking on the sidelines of the annual directors and company secretaries’ conference in Kampala on Wednesday, Mr Katto said the weak or lack of good corporate governance is the leading cause of institutional failure and collapse.
Uganda’s corporate governance is still low due to limited awareness and the value attached to such practices in building business sustainability.
Bank of Uganda deputy governor Dr Louis Kasekende said focusing on longer term sustainable value creation requires governance and sustainability to be better integrated into the strategy, operation and stakeholder communications of an organisation.
He said companies in Uganda need to understand that good governance contributes to competitiveness. The one-day conference organised by CMA and the Institute of Chartered Secretaries and Administrators under the theme: “governance for sustainability” also tackled risk management in organisations including; government and related agencies.
Standard Chartered Bank managing director, Lamin Manjang said although most multinational and a few local companies operating in the country adhere to good corporate governance practices, a huge number of companies still have weak or nonexistent corporate governance practices.
By Faridah Kulabako, Daily Monitor
