Corporate governance to increase cash flows

By Samuel Sanya

Greater awareness of corporate governance practices in the private sector is key to increasing tax compliance, officials at the Institute of Chartered Secretaries and Administrators (ICSA) have said.

Vision Group, Stanbic Bank, Centenary Bank, ACCA Uganda have teamed up with the Capital Markets Authority (CMA) and the ICSA for the fourth annual directors and company secretaries conference in a bid to reinforce proper corporate governance practice.

Corporate governance is a set of systems by which organisations are controlled.

The conference will he held under the theme: “Access to finance through corporate governance.” The event will be held at the Protea Hotel on February 26.

Michael Jjingo, the Centenary Bank chief manager for business growth says small businesses must be helped by actors in the financial sector to adopt corporate governance practices like employing accountants and auditors. He added that this will improve their cash flows, grow their businesses and increase their tax payments.

“While many businesses in Kikuubo (downtown Kampala) may be good in managing practical cash flows, it is important that they hire accountants and auditors.

Before we extend a loan to a business, we normally check whether the business files tax returns,” he said.

Jjingo was speaking at a prevent press conference at the ICSA offices at the BMK house in Kampala.

Gervase Ndyanabo, the Vision Group chief operations officer, says that the group has partnered with ICSA and CMA because corporate governance creates trust between the various stakeholders in companies, transparency and accountability.

“We are the biggest media house in Uganda and by sponsoring the fourth annual directors and company secretaries’ conference we hope to influence a lot of discussion on corporate governance in Uganda,” he said.

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