- Title: NIGERIA: Nigeria urges listed companies to eradicate corruption in business
- Date: 1st July 2011
- Summary: LAGOS, NIGERIA (JUNE 27, 2011) (REUTERS) VARIOUS OF WORKSHOP ON CODE OF CORPORATE GOVERNANCE IN PROGRESS ARUNMA OTTEH, DIRECTOR GENERAL, SECURITIES AND EXCHANGE COMMISSION ADDRESSING THE WORKSHOP COMPANY REPRESENTATIVES LISTENING COPY OF CODE OF CORPORATE GOVERNANCE VARIOUS HEADS OF LISTED COMPANIES LISTENING ARUNMA OTTEH TALKING TO HEADS OF COMPANIES (SOUNDBITE) (English) ARUNMA OTTEH, DIRECTOR GENERAL, SECURITIES AND EXCHANGE COMMISSION SAYING: "We believe that it is important from the individual company point of view, from a competitiveness point of view to be able to attract investors both local and international, they will have comfort when they know that the company is abiding by the best practice in terms of Corporate Governance, we also feel that it is a competitive tool for Nigeria as whole and as we seek as a nation to improve the competitiveness of our country and ensuring the flagship companies, companies listed on our Exchanges are abiding by best practice for us is key." VARIOUS OF COMPANY REPRESENTATIVES AT THE WORKSHOP (SOUNDBITE) (English) ARUNMA OTTEH, DIRECTOR GENERAL SECURITIES AND EXCHANGE COMMISSION SAYING: "The companies also have to declare the extent of their compliance to the code and that means there are liabilities for directors for misrepresentations, so in a sense while it is voluntary, there is a mechanism for us to reinforce good corporate governance practice, so it is actually the best of both world, because when people own an initiative, they tend to take responsibility for that." VARIOUS OF PARTICIPANTS AT THE WORKSHOP (SOUNDBITE) (English) HARM PLOEGER, EXECUTIVE DIRECTOR FOR FINANCE, COSTAIN (WEST AFRICA) PLC SAYING: "Our company has always been a head of the game when it comes to corporate governance so, there are some ideas in this code that we have not implemented yet, because we have never thought of them, but we believe it is good for business to have a good control of what is happening in your company." MORE OF PARTICIPANTS AT THE WORKSHOP (SOUNDBITE) (English) MICHAEL ELLAH, LEGAL ADVISOR, ELLAH LAKES PLC SAYING: "Because of in many areas of this economy there is a lot of corruption as we all know, so we need to find a way to block this from the corporate culture." PARTICIPANTS LISTENING (SOUNDBITE) (English) HARM PLOEGER, EXECUTIVE DIRECTOR FOR FINANCE, COSTAIN (WEST AFRICA) PLC SAYING: "You can not make the profits sustainably, which means over a large number of years if you do not have any form of corporate governance so, I think in the end corporate governance rather keeps you in business than you must see it as a cost." OTTEH AND COMPANY REPRESENTATIVES POSING FOR GROUP PHOTOGRAPH
- Embargoed: 16th July 2011 13:00
- Keywords:
- Location: Nigeria, Nigeria
- Country: Nigeria
- Topics: Crime / Law Enforcement
- Reuters ID: LVACK4O79JM3DCEJPL2KAZ28DBQ
- Story Text: Nigeria's Securities and Exchange Commission on Monday (June 27) led the country's top listed companies in a workshop on improving compliance to a government revised Code of Corporate Governance, which is aimed at curbing corruption and making the companies more competitive both locally and internationally.
In 2009 Transparency International ranked Nigeria 130 out of 180 most corrupt nations in the world, a perception likely to keep foreign investors ashore.
Last year, eight bank managing directors and their deputies were sacked and arraigned in court for fraud running into billions of dollars that nearly collapsed the country's banking industry, prompting a 4 billion US dollars bailout by the Central Bank.
To date, several former high level government officials are in custody of the anti-corruption police for embezzling equally astronomically large sums of cash from public coffers during their tenures in office.
Arunma Otteh, Director General of the Securities and Exchange Commission charged with revamping and regulating the country's stock exchange market has been at the forefront to rid listed companies of corruption.
"We believe that it is important form the individual company point of view, from a competitiveness point of view to be able to attract investors both local and international, they will have comfort when they know that the company is abiding by the best practice in terms of Corporate Governance, we also feel that it is a competitive tool for Nigeria as whole and as we seek as a nation to improve the competitiveness of our country and ensuring the flagship companies, companies listed on our Exchanges are abiding by best practice for us is key," she said.
Otteh said compliance to the Code of Corporate Governance by companies is compulsory, but did not clarify on weather companies which fail to comply would risk being sidelined by the commission.
"The companies also have to declare the extent of their compliance to the code and that means there are liabilities for directors for misrepresentations, so in a sense while it is voluntary, there is a mechanism for us to reinforce good corporate governance practice, so it is actually the best of both world, because when people own an initiative, they tend to take responsibility for that," said Otteh.
Over two hundred listed local and international companies were represented at the two day workshop whichon Tuesday (June 28) in the commercial capital Lagos.
Harm Ploeger, Executive Director for finance for Costain West Africa Plc, said the code clarified some corporate governance issues his company had been grappling it with for a while.
Costain Plc is a multi-million dollar listed company involved in civil engineering and construction of installation for oil and gas businesses in West Africa.
"Our company has always been a head of the game when it comes to corporate governance so, there are some ideas in this code that we have not implemented yet, because we have never thought of them, but we believe it is good for business to have a good control of what is happening in your company," said Ploeger.
Michael Ellah, legal advisor for Ellah Lakes Plc, a listed company which distributes fish farming, said corruption within the corporate industry was still a problem that affected businesses in the country.
He said compliance to the code would help facilitate a conducive atmosphere for investors and businesses.
"Because in many areas of this economy there is a lot of corruption as we all know, so we need to find a way to block this from the corporate culture," he said.
Although Nigeria is said to have one of the highest levels of corruption in the world, hundreds of local and foreign companies continue to make huge profits from their investments in the country.
Ploeger said that companies that comply with the code of corporate governance would ensure high profitability from investment in Nigeria and elsewhere.
"You can not make the profits sustainably, which means over a large number of years if you do not have any form of corporate governance so, I think in the end corporate governance rather keeps you in business than you must see it as a cost," he said.
Nigeria has embarked on market reforms aimed at attracting more foreign investors.
Nigeria's main stock index which fell more than 60 percent in 2008 and 2009 as ramped-up prices collapsed is showing a returning confidence.
Foreign investment in the market has almost doubled to 2.5 billion US dollars last year. - Copyright Holder: REUTERS
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