Multi-boards membership reflects poor corporate governance

Business analysts in Zimbabwe have raised concern over business people who sit on several boards purporting to serve the interests of those companies when in actual fact, they have ulterior motives mainly to enrich themselves rather than to practice good corporate governance.

Notable business people and civic leaders are sitting on several boards yet holding public office.

Analysts say in most cases, it reflects poor corporate governance due to serious conflict of interests.

Legal expert, Mr Canaan Dube of Dube Manikai and Hwacha holds the opinion that a person should not sit on more than four boards as this will compromise the quality of his decisions.

Chairperson of the Resource Exploitation Watch, Mr Tafadzwa Musarara said in as much as it sounds prestigious to sit on a number of boards, it is more prudent for these people to disengage from public office when they take up positions to seat on public institutions boards.

An example in reference is Harare Mayor, Mr Muchadeyi Masunda who is board chairman of Harare's biggest property owner, Old Mutual; cement manufacturer, Lafarge; platinum mining giant, ZIMPLATS and an estimated 10 others yet holding the position of Harare Mayor.

Mayor Masunda's assumption of a political position several years ago while chairing several boards simultaneously has been described by analysts as an act that will compromise the execution of his duties as there is conflict of interest.

Masunda is not the only one who holds multi-board membership as there are many other individuals seriously compromising corporate governance.