Corporate governance code launch postponed

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Bereng Mpaki

THE launch for the country’s first corporate governance code has been rescheduled to 26 August this year.

The launch will now be held virtually. The launch has previously been delayed by the Covid-19 pandemic after it was finalised in 2020.

Institute of Directors (IoD) Lesotho chief executive officer (CEO), Chaka Nkofo said the launch has also been pushed back because of financial and other challenges.

IoD Lesotho are the custodians of the code, dubbed the Mohlomi Corporate Governance Code.

The launch was initially set for 11 August this year to coincide with the commencement of the Basotho cropping season.

IoD Lesotho is a membership-based, non-profit organisation that was established in 2004.

The code is expected to lay the foundation for a robust framework for good corporate governance standards and guidelines for Lesotho corporates.

In rescheduling the launch, Mr Nkofo said they considered the prevailing Covid-19.

“We have unfortunately, experienced challenges that have made it impossible to go ahead with the 11 August launch and we will now do it virtually on 26 August,” Mr Nkofo said.

“We experienced sponsorship challenges which resulted in a challenging cash flow situation. We will now hold the event virtually in line with the Covid-19 safety protocols.”

He said the development of the governance code was in line with the fulfilment of IoD Lesotho’s mandate of leading good corporate governance advocacy across Lesotho’s socio-economic landscape.

“The code will provide a robust framework for good corporate governance standards and guidelines for Lesotho, documenting the values and principles that the Basotho nation was founded on.

“This will further enhance companies’ and organisations’ propensity to adhere to Lesotho laws and best business practices broadly. Institutional investors will also commit to impactful investments aligned to sustainable socio-economic development.”

With the code in place, private and state-owned entities’ practice of training their directors and executives outside the country will be a thing of the past.

“Training Lesotho directors and executives outside the country meant they were equipped with governance principles that did not take cognisance of our local context. Ultimately, some of the principles learnt were never tested and monitored on their applicability for Lesotho.”

The code has been developed with the financial assistance of the African Development Bank (AfDB) and the government.

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