By Okechukwu Nnodim

The persistent crash in prices of most global stocks, the financial downturn in many nations and countless liquidation of businesses have been attributed to the poor corporate governance and leadership in most of the affected organisations.

According to a former Director-General, Securities and Exchange Commission, Dr. Suleyman Ndanusa, the Nigerian financial sector had also suffered the “bitter consequences” of bad leadership, caused by a few executives, who violated their organisations’ core values.

Ndanusa, who was the guest lecturer at the Leadership and Excellence Public Lecture organised by PEARL Awards in Lagos on Thursday, said his experience as the head of the regulatory agency for the Nigerian capital market made him realise that the survival of any business venture, to a large extent, depended on the leadership.

He said, “The last decade has witnessed an avalanche of corporate scandals, misconducts and rascality that have shocked the world, both at the global and domestic scenes. Such scandals have awakened us to the reality that the business world was on the wrong path; worshipping the wrong idols and headed for self destruction.

“What began as a few executives charged with violating the law, scaled into issues of corporate governance and the failure of our governance systems.”

The Nigerian finance industry had recorded cases of managing directors of deposit money banks removed by the Central Bank of Nigeria over fraudulent activites.

The apex bank, among other reforms, had nationalised some DMBs and had threatened to do same to those who failed to meet its recapitalisation deadline.

Explaining that the rot in the financial system was due to “corporate thieves,” Ndanusa stressed that “the excesses of corporate leaders had increased geometrically both here at home and globally.”

He added, “While it is fair to say that there are corporate chief executive officers that are honest and dedicated to building their companies, far too many got caught up by short-term pressure of the market place and the consequent opportunities for personal wealth.

“Under such pressure and enmeshed in the quest for personal gain, corporate leaders have ended up sacrificing their values and their stakeholders.”

On how to attract honest leaders, the ex-SEC boss said business organisations should desist from appointing leaders based on “celebrity sentiments,” adding that individuals with laudable core values should at all times be given leadership positions.

According to him, until businesses in the country and globally wake up to this reality, the financial system may continue dwindling.

“What we need are new authentic leaders. Leaders, who have deep sense of purpose and true to their core values; leaders, who are courageous and can recognise the importance of their service to the society. We need visionary leaders,” he said.

Source: Punch