Corporate governance and accountability in Uganda a stakeholder perspective

Abstract

The interviews documented in this study suggest that much more sensitisation is needed to develop an awareness of the importance of good governance and accountability among a wide range of groups of stakeholders in Ugandan corporations. Several organisations, including the ICGU, are attempting to improve the situation, but the government itself is seen as perhaps needing to exhibit a greater will to tackle corruption— and encourage accountability and good governance—not just in words, but in practical actions. Political cronyism, vested interests and interference, as well as a lack of sufficient backing for regulatory agencies, appear to be serious obstacles to the emergence of improved governance structures in Uganda. A concerted effort was thought to be required to ensure that management and boards develop better corporate governance practices and enhance their accountability framework so that they become (and are seen to become) good corporate citizens. In summary, there is clearly a need for the Ugandan authorities to address the issues identified in this study, and work towards a system of governance that will enhance confidence (both domestic and international) in the inherent accountability of the Ugandan corporate system. It is apparent, however, that many of the key players in the system perceive there to be a sufficiently widespread degree of corruption to make substantive improvement difficult. The priorities of the Western-based codes on corporate governance may therefore only have limited applicability for a developing nation such as Uganda. While the present study has limitations, most notably in the fact that only those willing to be interviewed took part, the results point strongly to a common view along the lines stated above and a need for action that is increasingly urgent