2. Paper Format
• The challenge
• Cases: International and Local
• What is COI?
• Managing COI
• Is Management of COI good for business
• Conditions of successful management of COI
2By Prof. Waswa Balunywa
3. The Challenges
• You do it , you are doomed
• You don’t do it you are doomed
A challenge of good governance
3By Prof. Waswa Balunywa
4. Why the Challenges?
• Public sector use funds for the general public
in form of taxes.
• There is need for accountability
• Accountability demands transparency
• Transparency demands competition
• Competition creates equity
4By Prof. Waswa Balunywa
5. Challenges of Good Governance
Good governance requires:-
• Transparency
• Competition
• Accountability
• Participation
• Equity
More urgent in public sector
5By Prof. Waswa Balunywa
6. Cases
International cases:
• Enron
• Lesson of the Baring Bank, Singapore
• Arthur Andersen
• World com
French President giving job to his son
6By Prof. Waswa Balunywa
8. Local Cases
• A director supplying goods to a company
where he is in position to influence decision.
• Government officer supplies goods to their
own department.
• Sitting on a Committee to interview your
blood relations
8By Prof. Waswa Balunywa
9. Levels of Governance
National level
The state of governance of national affairs
Corporate Organizations
The state of governance in corporate affairs
especially business organizations.
9By Prof. Waswa Balunywa
10. What is COI?
• Is when public officers are using public assets
for private gain
• Taking advantage of position or knowledge to
influence an outcome that is beneficial to you.
• Abuse of office.
• COI is a governance matter
• COI is an issue of corruption.
10By Prof. Waswa Balunywa
11. Major Areas of COI
• Conduct of public officials
• Conduct of trustees
• Conduct of Management of public limited
companies
• Public procurement practices
• Management of public finances
11By Prof. Waswa Balunywa
12. Consequences of COI
• Enrichment of individuals
• Diversion of resources to private use
• Public not getting benefits intended for it
• Reduces competition
• Reduces equity
• Reduces levels of service
• May kill organizations
12By Prof. Waswa Balunywa
13. Managing COI
COI is a governance matter and has to be
managed not fought.
Managed through:
• Preventing it from occurring
• Enforcing Rules of Behaviour
• Establishing code of conduct for public officers
• Legislate framework e.g. Leadership code
13By Prof. Waswa Balunywa
14. Managing COI- Cont’d
• Establish offices of obudsman e.g. IGG
• Restriction of post employment of retired
public officers.
14By Prof. Waswa Balunywa
15. Enforcement of Rules
• Asset Registrar for Leaders
• Protect whistle blowers
• Courts
• IGGs
15By Prof. Waswa Balunywa
16. In Corporations
Preventive Measures:
• Establish code of conduct
• Legislation on Directorship
• Accounting standards
• Strengthening audit
16By Prof. Waswa Balunywa
17. Enforcement
• Empower enforcement agencies
• Educate public about benefits
• Ability to see through decision
• No politicization
17By Prof. Waswa Balunywa
18. Challenges of Managing COI
At national level:
• Lack of political will
• Lack of agreement by key players on principles
and practices of COI
• Cultural issues
• Tribes and religions
• Weaknesses in enforcement
• Backward economy
18By Prof. Waswa Balunywa
19. Challenges of Managing COI- Cont’d
• Lack of strong Institutions
– Accountants Regulatory Body
– Stock exchange Rules and Regulations
– IGG’s office: leadership Code
19By Prof. Waswa Balunywa
20. Challenges of Enforcement at corporate Level
• Weak economy
• Absence of formal management culture
• Domination of economy by unlisted
companies
• Inability to professionalize management and
entrepreneurship
• Business and ethics issues
20By Prof. Waswa Balunywa
21. Is Management of COI Good for Business?
Yes it is:
• Promotes equity
• Encourages joint stock business
• Encourages professionalism in business and
management
• Strengthens business and the economy
21By Prof. Waswa Balunywa
22. Conditions of Successful Management of COI
• Effective political leadership
• Strong legal framework
• An independent press
• Professional issues in Management,
Entrepreneurship, Accountancy, Audit
• Clear rules on the duties of politicians and officials
• Accountability at all levels in government
• Enforceable laws
• Strong institutions
22By Prof. Waswa Balunywa
23. End Note
• How are you faring as an individual?
23By Prof. Waswa Balunywa
