Poor Corporate Governance destroys reputations
On the 14th of February, President Jacob Zuma has resigned as president of South Africa.
“I have…come to the decision to resign as the president of the republic with immediate effect,” Zuma told reporters at the Union Buildings on Wednesday night.
Zuma’s time as president has been marked by controversy, ranging from his relationship with the controversial Gupta family, dropped charges of corruption and his acquittal on a charge of rape, to the upgrades to his Nkandla homestead.
Africa is going through difficult periods of transition, a shift of power. The powers that do not want to let go of the powers they have, which makes the following phrase extremely applicable: Power corrupts. Absolute power absolutely corrupts.
We can see with the two African countries (Zimbabwe and South Africa) that recently went through the change in leadership is that Corporate Governance was at the core of each of these leaders’ downfall.
The tone at the top, leadership is of the utmost importance in running a country, a business, a NGO and a church. With all the checks and balances in place to provide Combined Assurance.
Corporate Governance has affected both these countries, Zimbabwe and South Africa, with catastrophic consequences. Zimbabwe, over the last decade, did not have a recognized currency and people had to queue at banks and be denied of their constitutional right of free trade and access to currency.
In South Africa, the midnight unilateral decision-making and the continuous allegations and investigations of corruption and state capture, has created such volatility on the ZAR currency, as well as all through the commodities (Gold Platinum, etc).
Just an indication of a new leadership era after the December elections, has brought the ZAR currency to a 3-year low against the green back (US Dollar).
Governance and reputational risk is two-sides of the same coin and we need to invest in that.
Choose Crest Advisory Africa to be your Corporate Governance partner to drive:
- Risk Management
- Internal Audit
- Protection of Personal Information
- Business Continuity
- and many more.
Contact us on 010-595-4675 today to get a free hour’s consultation to discuss the above.