Conflict of Interest the bane of Ghanaian businesses – Joe Jackson

CEO of Dalex Finance, Joe Jackson, has said the bane of most Ghanaian businesses is the issue of conflict of interest.

According to him, most Ghanaian businesses overlook the issue of good corporate governance and conflict of interest which often causes local companies to run into trouble.

Further asserting conflict of interest is one of the major reasons why local businesses are unable to perform better than foreign businesses.

“Our local companies turn to overlook the issue of good corporate governance, conflict interest, related party transactions among others and so we often run into trouble and that explains partly why most local companies don’t do well as foreign businesses.

“The bane of the country’s financial sector and businesses at large is the conflict of interest and we must address it,” he quipped.

He made the assertion while speaking on the NorvanReports and Economic Governance Platform (EGP) X Space Discussion on Sunday, May 26, 2024.

The X Space Discussion was on the topic, “Corporate Governance and Conflict of Interest: The Case of SSNIT’s Sale of Assets”.

Speaking further, Mr Jackson averred the issue of conflict of interest identified in SSNIT’s decision to sell 60% of its shares in six hotels to Rock City Hotel owned by the Agriculture Minister, Bryan Acheampong looked at with commitment made to ensure that going forward the issue of conflict of interest is dealt with in the operations of businesses, particularly state-owned enterprises, institutions and agencies.

“SSNIT’s issue of conflict of interest is just one of the many cases, there must be a commitment to ensure that there is no conflict of interest in business operations of public institutions particularly and it starts from the top,” he posited.

The concerns raised by Mr Jackson are not isolated, analysts and industry experts have frequently pointed out that the lack of stringent governance frameworks and oversight mechanisms significantly hampers the growth and competitiveness of local businesses.

By contrast, foreign companies often benefit from robust governance structures that enhance transparency and accountability.

Mr Jackson’s comments highlight an urgent need for reforms aimed at strengthening corporate governance standards across Ghanaian businesses. Ensuring transparency and mitigating conflicts of interest could pave the way for improved performance and sustainability of local enterprises.

The debate over SSNIT’s decision to sell its shares to Rock City owned by the Agric Minister started when the North Tongu MP, Samuel Okudzeto Ablakwa lodged a formal petition with the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate allegations surrounding the sale of six hotels to Rock City Hotel owned by Bryan Acheampong.

The hotels under scrutiny in the petition include Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort, and the Trust Lodge Hotel.

Mr Ablakwa’s petition to CHRAJ seeks an investigation into various allegations, including conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft.

Source: Norvanreports