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Former Fiji High Court judge Nazhat Shameem has again highlighted local corporate governance issues and the extent to which corporate bodies can be trusted to follow rules of corporate governance.
Speaking at the Pacific Countries Ports Association Conference in Suva yesterday, Shameem said there are many corporate bodies that do not adhere to their own procedures and rules.
“There are many people who scoff at red-tape and procedures… Procedures exist to ensure corporate governance. There must be sanctions for breaches of procedure, and (this is a problem for Fiji) the procedures must apply in the same way for everyone.”
Shameem also gave Fiji as an example where one rule of corporate governance is broken.
“A good example of a rule which is often broken in Fiji is the rule which determines lines of communication. A corporate governance policy may say that directors on the Board may only communicate with the chairperson of the Board or the CEO. However Fiji has experience with administrative staff and with sales staff in order to further a personal agenda.”
She added that corporate governance is about trust and honesty and treating other people’s assets with responsibility and care.
“Greater observance of corporate governance principles and values in Fiji might have spared us the National Bank crisis, the Agricultural scam and the Housing Authority fraud.”
By Repeka Nasiko
