BUSINESS leaders from different sectors have teamed up to draft a governance code in an attempt to bring to an end the continued failure of various businesses as a result of “moral bankruptcy and unethical behaviour of business leaders”. This follows the economic crisis of the past decade that has been attributed to poor corporate governance which resulted in unlawful speculative investments, institutional collapses, parallel markets, as well as shortages of local and foreign currency.
Institute of Directors of Zimbabwe (IoDZ) executive director, David Mutambara said they would use the proposed national code on corporate governance to stamp out “rampant corruption designed to cripple the economy and condition of the Zimbabwean people”.
The code is being drafted jointly by the IoDZ and the Zimbabwe Leadership Forum (Zimlef).
“The code itself is not meant to solve problems of the past, but it is meant to define the desired future,” said Mutambara.
“It is focused on the future than addressing the past. One important thing is to make sure that whatever we do resonates with the bread and butter issues of the ordinary Zimbabwean.
“It has to relate to the daily needs of the ordinary person.”
Among other things, the code will recommend amendments to listing requirements on the Zimbabwe Stock Exchange.
Zimlef chairperson and prominent Harare lawyer Canaan Dube said the code was also an attempt to restore investors’ confidence and trust in Zimbabwe.
“People need to know the advantages derived from good corporate governance compliance and what bad corporate governance does to investment, prospective investors and the economy at large.
“Security of investment is of great concern to any investor,” said Dube.
Renowned business leader Luxon Zembe said the code was now “work in progress” and would be completed before the end of the year.
He said the project had generated a lot of interest in Zimbabwe and beyond the country’s borders.
“This commitment from Zimbabweans is very critical in unlocking the doors and the value we can realise from this,” said Zembe.
“By the end of this year Zimbabwe will be having its own corporate governance code.
“It takes time and commitment, but I believe as Zimbabweans we have what it takes to make the project successful.”
There had initially been scepticism from some people who felt it was more of a duplication of South Africa’s King Report.
The report, initially drafted in 1994, has been pivotal in shaping the direction of South African businesses.
A number of the King Report principles have since been adopted by the Johannesburg Stock Exchange.
But Mutambara said they would not copy the King Report in drafting their own code. He said they would only use it for background referencing.

BY VUSUMUZI SIFILE

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