Former Chief Executive Officer of the National Pensions Regulatory Authority (NPRA), Dr. Daniel Seddoh, has issued a stern warning to board members about the serious responsibilities and potential liabilities they face.
He emphasised that serving on a board is not merely about collecting sitting allowances; but it also involves significant accountability, which can lead to severe consequences, including imprisonment, for misconduct.
Dr. Seddoh, now a management consultant, expressed concern over the lack of understanding of the importance of boards, particularly in state institutions. He called for a reevaluation of the criteria used to appoint board members and trustees.
Being on a board is a critical element of corporate governance that directly impacts the success or failure of an organization. However, it appears many accept these positions primarily for financial gain, while others forget they even agreed to serve, especially in inactive companies.
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Dr. Seddoh, who serves on a number of boards, cautioned that directors must recognise the responsibilities they assume.
“If you accept to be on a board then you must know you are exposing yourself to liabilities and if you sleep on the job, there are consequences. If we’re exacting those consequences people will be careful which board they will go on”, he told The Accra Times.
The Board of Trustees of the Social Security and National Insurance Trust (SSNIT) has recently faced criticism for approving the planned sale of the Trust’s hotels to Agriculture Minister Bryan Acheamong’s Rock City Hotel, leading to a clash with organised labour. Similarly, the Board of the Electricity Company of Ghana (ECG) recently rejected a GH₵5.8 million fine imposed by the Public Utilities Regulatory Commission (PURC).
Referencing these cases, Dr. Seddoh criticised the quality of appointments to state institution boards, advocating for the selection of individuals who can effectively fulfill their mandates.
“Due apologies that we must be looking for trustworthy people who have the time, expertise, and technical knowhow to be able to serve the Board very well and direct the activities of SSNIT and take it out of the influence of politicians,” he added.
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He also disagreed with the former ECG Board’s stance, arguing that they should be held accountable for their actions. He stated that enforcing such sanctions would compel other board members to take their responsibilities more seriously.
Dr. Seddoh highlighted the distinction between Boards of Directors and Boards of Trustees, noting that trustees bear a greater burden of trustworthiness and competence. “If you are on SSNIT Board, you don’t understand issues relating to investment, you don’t understand financial statements, you are not making any effort to learn those things to make your contributions, you don’t read your board papers, you only go for the sitting allowance, then there is a problem”, he stated.
He also recommended that all boards establish channels for regular engagement with their constituents to ensure decisions reflect the interests of those they represent.
