An Evaluation Of Corporate Governance Processes In Telecom Namibia

ABSTRACT

Corporate governance is a challenge in many state owned institutions. Telecom is a private company in which the major shareholder is the government. The researcher sought to investigate the factors that affect corporate governance at Telecom. The population of this study comprised of the executive employees of Telecom and its board of directors.

Good corporate governance practices are believed to be one of the effective strategies for redressing poverty, maximising revenue, increasing shareholder wealth as well as optimising service delivery. The benefits often include accountability of the company and avoidance of massive disasters before they occur.The study used a mixed method research approach to collect data. The data was collected from the executive management and the board of directors. The respondents were selected using purposive sampling. The data was collected using a questionnaire that had structured and non structured questions. The researcher found that there were many factors that impacted on corporate governance at Telecom Namibia. Some of the factors that impacted on corporate governance were delay in the processing of annual financial reports, lack of autonomy on the part of the board of directors, remuneration for the CEO that is not linked to performance management among many other factors. The researcher recommended that Telecom must introduce changes in terms of corporate governance at Telecom, which would help the board to make critical decisions, focus more on financial profitability, and link the remuneration of managers to corporate governance and also restructuring the firm in order to attain profitability.