ThinkGhana is compelled by the extraordinary situation unfolding in respect of two matters that have a direct bearing on the level of corporate governance practices in Ghana and its potential to affect investment inflows and the continuing sorry state of Ghana securities regulatory framework to issue this press statement.
Ghana International Airlines
?The proper government of companies will become as crucial to the world economy as proper governing of communities? (James Wolfensohn, Former President, World Bank)
ThinkGhana wishes to express its concern at the procedure adopted by the government to protect its investment in Ghana International Airlines (G.I.A.). We do believe sincerely that having declared the private sector as the engine of growth, and having shown a desire to engage in public-private sector initiatives such as GIA, for the benefit of all citizens of Ghana, it is imperative that the government utilizes and follows laid down corporate governance principles in such matters. We do sincerely believe that though the government may have genuine concerns about certain developments in GIA, its interests are better protected by its chosen appointees on the Board of Directors. At worst, we believe that the government with 70% stake in the business could also utilize its powers as a majority shareholder, expressed through shareholder meetings to achieve its objectives. We are concerned that in government?s desire to halt a perceived wrongdoing, it apparently did not follow the laid down structures and acted not through the corporate organs at its disposal but rather chose to achieve what may ultimately be a good intention by unfortunately abandoning good corporate governance practices.
ThinkGhana therefore takes the opportunity to encourage the government to act as in its capacity as a shareholder when it enters into private sector ventures. Ghana has all the facilities available for redress in corporate governance matters. We encourage the government to set an example for the rest of the continent by continuing its laudable reliance on the rule of law in corporate matters, in order to further assure all investors, especially private sector partnerships with government, that their interests as expressed in shareholder agreements would be upheld, no matter how politically expedient a ?governmental act? may seem in the short term.
