Many local corporate executives and global economy enthusiasts had convened in a city hotel for a lecture on the effect of the financial crisis on corporate governance legislation and regulation. The Institute of Finance Management (IFM) and Dublin Institute of Technology (DIT) of Ireland co-organised the lecture under the facilitation of Dr Joseph Coughlan and Mr Brian McGillion of DIT.
Dr Coughlan said CG can promote transparency within companies and government, helping to attract Direct Foreign Investment (FDI) for the country because investor’s confidence is built on how much the country is open and competitive. “Good corporate governance is more than a set of rules or code; it is a state of mind and a culture that needs to be embedded from government right through to corporate level,” said Dr Coughla.
“The government of Tanzania should talk more about how they can improve competitiveness and how they can be good to investors,” he added. He said since the passing of economic crisis, the focus of corporate governance in Western Europe has been on regulation while in USA the focus has been on legislative changes.
In Ireland and United Kingdom for instance strict provisions such as auditors’ independence, directors taking more responsibility for their mistakes, enhanced corporate disclosures, Chief Executive Officers (CEOs) to sign corporate tax returns have been put in place.
“In US some changes in legislations have been made with Securities Exchange Commission being the main implementer. The legislations have criminal provisions for breach of provisions,” Dr Coughlan added. According to Mr McGillion, who presented a paper on the Irish economy emerging from the crisis, the country was recovering from a very deep downturn and the economy is expected to return to growth this year.
“There has been a significant policy response on track to correct the excessive deficit by 2015 and determined approach to banking issues,” he noted. The Rector of IFM Prof Edwin Mjema said it was important for Tanzania to improve corporate governance especially to public organisations for them to be financially sustainable. Mjema said the collaboration between the two colleges will be extended to other subjects other than business provide for wider area of cooperation.