Application of effective corporate governance principles will take our democracy to the next level
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St. Kitts and Nevis Prime Minister Dr. the Hon. Denzil L. Douglas (Photo by Erasmus Williams). |
BASSETERRE, ST. KITTS, MARCH 9, 2005 St. Kitts and Nevis Prime Minister Dr. the Hon. Denzil L. Douglas has called for serious changes to be made in the way that the Private and Public Sectors in the Caribbean do business.
In both sectors, all activities and decision-making must be guided by principles of fairness, integrity, morality, and responsibility. Accountability issues must be systematic regular and accessible to both shareholders and taxpayers, so that they could be satisfied, and have the opportunity for input for their best interest, Prime Minister Douglas told some 150 delegates from the region attending the Second Meeting of the Caribbean Corporate Governance Forum at the Eastern Caribbean Central Bank (ECCB).
Dr. Douglas said new and enhanced Corporate Governance processes must become enshrined in the policies and practices of both Governmental institutions and Private Sector companies and institutions to avert the debilitating fallout resulting from scandals of mismanagement and unethical corporate practices.
Prime Minister Douglas said his St. Kitts-Nevis Labour Government has been exerting great effort to enhance the corporate governance processes in public sector entities throughout St. Kitts and Nevis and that immediately after the last general elections in 2004, the ministerial portfolios of his Cabinet were rearranged to facilitate even greater efficiency, cohesiveness and accountability in the discharge of ministerial functions.
Moreover, all public sector boards have been reconstituted to ensure that the skills and expertise of board members match the requirements of the respective boards, and that each board has the appropriate balance in experience, technical knowledge and managerial capability to ensure the effective and efficient discharge of the its functions, said Prime Minister Douglas.
At the same he said, his Government has been working with the Eastern Caribbean Economic Management Programme (ECEMP) to introduce a new Financial Administration Act and a new Audit Act, that will not only promote greater transparency and accountability in Central Government operations, but will also ensure that Statutory Boards and Authorities adhere to the same high standards of accountability and transparency applicable to the Central Government.
Dr. Douglas reaffirmed his Governments firm commitment that public entities must not be exempted from the application of the Corporate Governance principles and called on the delegates to ensure that the Caribbean play an active role in fostering improved corporate governance in public sector and private sector entities.
Indeed, we have a strong tradition of democratic government in the region, and the application of effective corporate governance principles will take our democracy to the next level, said Prime Minister Douglas.
The St. Kitts and Nevis leader pointed out that every member of any private or public sector board is accountable and shares responsibility for any incidence of misconduct and for decisions made. In other words, the systems must be fair, but aggressive towards inspiring trust and confidence among shareholders and taxpayers. Dr. Douglas said.
Such trust and confidence provide the basis for future investment for both national and international investors. If we are sensitive to the issues that affect investor decisions, I believe we can create the framework for attracting additional investment capital as integral to the strategy for economic growth and development, and especially, for the reduction of poverty in the region, said Prime Minister Douglas.
He said that good governance, therefore, provides the fuel for greater collaboration between the Private Sector and the Public Sector, both becoming committed stakeholders in creating both social and economic environments that lift standards and become mutually beneficial.
Dr. Douglas said he was pleased that the Caribbean region is making significant progress in creating an environment of good governance, in a region where present governance codes and practices are varied.
This journey that we have begun is vitally important in todays global environment, and indeed, we have been fortunate not to experience the kinds of scandals that have shaken the international business community. But that is not comforting in todays environment. Change is imperative to improve investor confidence and enhance the Regions international attractiveness, he advised.
Prime Minister Douglas, who is also the Minister of Finance said the Caribbean has been largely successful in raising the level of awareness or sensitivity among corporate interests in the Caribbean, but there is much to be done.
He said he was encouraged by the commitment to explore further issues, particularly the pursuit of identifying the factors and mechanisms that would lead to the implementation of corporate governance reform in the Caribbean region.
