Corporate Governance

Corporate governance is the international term associated with the trend

towards greater corporate responsibility and the conduct of business within

acceptable ethical standards. Transparency, accountability and openness in

reporting and disclosure of information, both operational and financial, are

internationally accepted to be vital to the practice of good corporate

governance.

The object of good corporate governance is attained when institutions

demonstrate their public accountability and conduct their business within

acceptable ethical standards. This demonstration will take the form of

effective financial reporting, both internally and externally, and the unqualified

encouragement of public debate in respect of such financial reports.

Effective corporate governance in the public sector means that public officials

must demonstrate compliance with the following six characteristics:

* They are composed of people with the knowledge, ability and

commitment to fulfill their responsibilities;

* They understand their purpose and whose interests they

represent;

* They understand the objectives and strategies of the

departments;

* They understand what constitutes reasonable information for

good government and do everything possible to obtain it; * Once appropriately informed, they are prepared to ensure that

the department's objectives are met and that operational

performance is never less than satisfactory; and

* They fulfill their accountability obligations to those whose

interests they represent by regularly and adequately reporting

on their department's activities and effectiveness.

Financial reporting obligations support good corporate governance through

outwards and internal reporting.

* Outwards reporting is to Parliament and all external

stakeholders which include:

o Ministers

o