[Vidéo News] NCCG hosts Awareness Session on the CG Scorecard Assessment Report 2022

In our midst today, we are very fortunate to have several eminent speakers – the Honourable Minister of Financial Services and Good Governance, the Chair of the NCCG, the CEO of the SEM as well as the KPMG Lead Consultant behind the 2nd edition of the scorecard assessment report, all of whom have kindly agreed to share their insightful observations as well as their vision not only on the corporate governance journey achieved so far by Corporate Mauritius but equally importantly on the various corporate governance aspects that still require improvement as well as the key projects that are in the pipeline that will positively and significantly impact the corporate governance landscape of the country.

I am therefore extremely pleased to welcome you to this awareness session that will highlight the key findings of the 2022 edition of the scorecard assessment exercise, the report for which was launched in October 2023.

The 2022 Report as you know is based on the 66 KPIs of the Corporate Governance Scorecard for Mauritius (2021) (the “Scorecard”) which was launched in October 2021. These KPIs cut across 3 CG dimensions, namely, (i) Board Effectiveness, measured by 27 indicators (ii) Audit Oversight and Effectiveness, measured by 19 indicators and (iii) Relations with Shareholders, Stakeholders, Sustainability and Inclusiveness, measured by 20 indicators.

As chair of the technical sub-committee of the NCCG, allow me to share with you two generic observations on the 2022 Scorecard Assessment Report.
Firstly, the second edition of the Scorecard assessment exercise has witnessed the voluntary participation of 27 entities including not only public interest entities but also several state-owned enterprises. This, in itself, underlies the increasing importance which corporate Mauritius attributes to corporate governance practices and corporate governance reporting.

Secondly, notwithstanding the different array profiles of some of this year’s participating entities, the overall weighted average corporate governance score has risen from 54% in 2021 to 67.5% in 2022 which demonstrates the business community’s confidence in its corporate governance journey. These results seem to indicate that with adequate support, organisations willingly embrace the supreme goal of enhancing the quality and level of corporate governance disclosures, substantiated by evidence-driven explanations, even though of course there are still areas where improvement in the quality of disclosures is required.

It goes without saying that for the 2023 and ensuing editions of the scorecard assessment exercise, the NCCG relies on the continued and regular participation of Public Interest Entities – PIEs as we call them fulfil a strategic and public role in providing an array of essential goods and services (banking, finance, insurance, transport, water, electricity to name but a few) – to foster not only a culture of robust corporate governance practices in Mauritius but equally importantly in positioning Mauritius as a reputable and resilient international financial centre.

Thank you, Matthew, for your opening remarks. We just heard from Matthew Lamport, director of the National Committee on Corporate Governance (NCCG) and the Chair of the Technical Committee of the NCCG.

We are gathered here to take stock of the results of the Scorecard Assessment Exercise 2022. Aneessa will be sharing with you the detailed results of that exercise.

The CG Scorecard 2021 as well as the 2 successive assessment exercises we have carried out in 2021 and 2022 have been well received by the business community. In 2021, we saw the participation of 21 listed companies (and there were several large corporates & 2 parastatal entities). The year after, the exercise was open to PIEs and we saw the participation of 27 organisations (of which 8 were parastatal bodies + there were also a number of repeaters from 2021). For the 2023 assessment exercise, which we are currently running, 24 entities have registered their participation.

From these 3 exercises, we see an interesting pattern shaping up:
1. There is an increasing number of parastatal entities volunteering to have their governance framework assessed.
2. There are several repeaters, year in year out.
3. Once the Assessment Reports are out, there are some participants reaching out to the Technical Cttee of the NCCG for active discussions and engagement.
4. Several Financial Services Regulators have had their governance framework assessment through the exercise.
5. The level of participation in the exercise, year in year out, is good which shows that organisations in Mauritius are using the Scorecard to improve their governance practices and disclosures.
6. From the 2 exercises already carried out, we have meaningful empirical data to show that governance practices and disclosures by organisations in Mauritius are improving. This can only be beneficial for our IFC.

All these insights augur well for our jurisdiction. The NCCG is thus achieving the objectives it had set out when it first developed the CG Scorecard for Mauritius. But we would not have achieved this much without your collaboration, ladies and gentlemen. Corporate Mauritius has collaborated fully by actively participating in the assessment exercises, year in year out. Thank you & please carry on doing so.
What we have not seen yet, is research work / papers from the academia world on the findings of these assessment exercises. These research work and papers have their place in the CG ecosystem. I can only hope that this remedied.
I seize this opportunity to warmly thank Mrs. Aneessa Mungroo and the KPMG team for the fantastic work they did for the 2022 assessment exercise.
I would also like to acknowledge the strong collaboration the NCCG had with the University of Mauritius in 2021 when we elaborated the CG Scorecard and its User Guide.

Further development in Corporate Governance Landscape –
Looking ahead, there are a number of important developments happening in the CG landscape of Mauritius.

1) Review of the 2016 Code

We are reviewing the 2016 CG Code of Corporate Governance. Following a tender exercise, PricewaterhouseCoopers has been selected to assist the NCCG in reviewing the 2016 Code. Work has already started. Your comments / feedback (on what has worked so far and what is not working) matter to us. We will be carrying out a survey and holding focused group discussions to gather your comments. This will happen at 2 stages; one, prior to elaborating a first draft of the new Code; and secondly, once the draft new Code is available.

Following the signature of the OECD country partnership programme, OECD will be an active stakeholder in the review of the 2016 Code as they will seek alignment of the new Code with their recently revised G20/OECD Principles of Corporate Governance.

This new Code will be your Code, ladies and gentlemen. It will only be meaningful if you, private and public enterprises, take an active role in interacting with the NCCG during those advocacy sessions. We invite you to actively collaborate with us during those working sessions. It is only through a collaborative approach that we will shape the Code and the governance practices we want.

A tentative target date to launch the new Code has been set for October 2025.

2) Recently amended Financial Reporting Act 2004

S. 33(b) of The Finance (Miscellaneous Provisions) Act 2024 has amended the FRA by inserting a new section 69A which requires all PIEs to register with the NCCGas from 1st Jan 2025 and in so doing to pay a prescribed fee.

This marks an important evolution for the NCCG in its quest to become an autonomous and independent body.

The NCCG is busy working on an e-registration process for PIEs through its website. We are contemplating charging PIEs a nominal amount as yearly prescribed fee. We will communicate further on this matter in the press.

This self-financing will enable the NCCG to structure & staff itself properly so as to be able to run its projects.
I would here like to warmly thank Minister Bholah for his open door policy & collaborative approach in supportive the various initiatives of the NCCG.

On an Ending note,
as we co-create the governance / compliance ecosystem of Mauritius, let us be mindful to refrain from indulging in a prescriptive / box ticking process but rather adopt a meaningful and agile governance / compliance practices which will enhance the attractiveness of our IFC.

Thank you, ladies and gentlemen, for your kind attention.

I am delighted to here today on the occasion of an awareness session on the Findings of the Scorecard Assessment Report 2022.

This event, organized by the National Committee on Corporate Governance (NCCG) in collaboration with the Stock Exchange of Mauritius Ltd and the Financial Services Institute, marks an important step in our ongoing journey towards excellence in corporate governance.

Every one of us here has gone through assessments since young, be it in the form of exams in school or performance appraisals at work. Ultimately, such assessments seek to achieve two main purposes.

First, to inform us of how we are doing.

And second, to point us to areas where we can improve.

In the same vein, the Scorecard and the Assessment Report highlight areas where the quality of disclosures can be enhanced. This underscores the need for continuous vigilance, training, and efforts to refine our corporate governance practices.

The vision of my Ministry is to position Mauritius as a jurisdiction that is transparent and operates at a very high standard. This vision is at the core of our commitment to fostering a robust International Financial Centre.

My Ministry is actively engaged in promoting and enforcing good governance practices to safeguard national values and eradicate fraud, corruption, malpractices, and irregularities in all aspects of public life.

Good Governance brings transparency.

Transparency brings trust.

Trust brings investments
.
And investments generate growth and economic development.

The governance aspect is implemented through two main bodies under the purview of my Ministry, namely the Office of Public Sector Governance and the National Committee on Corporate Governance.

The Office of Public Sector Governance is tasked with implementing good governance standards within the public sector, while the National Committee on Corporate Governance issues standards for corporate governance in the private sector.

These bodies ensure that governance principles are embedded both in the public and private sectors, fostering a cohesive and integrated strategy that resonates across the entire economic landscape.

While there are several noteworthy milestones, there are two particular accomplishments that resonate as a testament to our collective dedication.
The successful exit from the Financial Action Task Force (FATF) grey list and the subsequent recognition as one of the top-tier jurisdictions compliant with all 40 FATF Recommendations are landmark accomplishments.

Despite being delisted from the FATF Grey List, Mauritius has continued to maintain its momentum in the fight against money laundering and terrorism financing.

We have continued to carry out several strategic initiatives such as conducting of risk assessment and enacting/amending several legislations.
This has reinforced our position as a jurisdiction of substance anchored on a robust Anti-Money Laundering and Combatting the Financing of Terrorism and Proliferation Framework.

These achievements are a collective success, involving collaboration with relevant stakeholders, international organizations, and the private sector.

Launched in October 2021, the Corporate Governance Scorecard is a tool that has been developed using global principles and internationally recognised good practices such as the OECD Principles of corporate governance.

Mauritius is among the very few countries in the world which measures progress in corporate governance practices in a structured, objective and quantifiable manner.

The first assessment report was released in 2021 and was open to organisations listed on the main market and DEM listings of The Stock Exchange of Mauritius.

The second Scorecard assessment in October 2023 was open to Public Interest Entities as defined in the First Schedule of the Financial Reporting Act 2004. 27 organisations voluntarily took part in the Scorecard exercise.

And individual entity results and findings have been, as was the case last year, anonymised to preserve confidentiality.

The report strengthens the business community’s confidence in its corporate governance journey.

Progress is evident with an average CG weighted Score of 67.5%, compared to 54% in 2021.

We need to peel deeper beyond the scores to look at what they are telling us, including any underlying trends. 

Ladies and gentlemen,
The presentation of Annual Scorecard Reports should therefore not only look good as end-of-year events but go a long way in embedding good behaviours in everything we do.

There is so much that has been done, so much still being done and much more to do.

By working together, government and the private sector can pursue their coordinated efforts to consolidate our reputation as an international financial centre of excellence and enhance the resilience and sustainability of our economy.

At this juncture, let me extend my appreciation to the NCCG for its dedication and expertise in advancing corporate governance in Mauritius. Allow me to commend the Technical Committee for its meticulous work in developing, refining, and implementing the Scorecard.

I also appreciate the fact that key stakeholders such as the Financial Services Institute and the Stock Exchange of Mauritius have set out together on this mission. This committed ecosystem of partners, all rallying around the cause of good governance, is the backbone of our progress.

Mauritius will continue to play an important role in shaping the future and economic prosperity of Africa.

We are leading by example and we have become an inspiration for our Peers in the region.

We have before us unique opportunities for our leaders to build institutions that will serve our country and our region well.

A positive corporate culture can look different from company to company. But I believe there are some common elements.

The first is a culture that values feedback.

Second, is a culture that embraces diversity.

Third, is a culture that seeks improvement, not just at the board or organisational level, but at the level of the individual.

Finally, boards must also set the tone for the appropriate level of transparency and disclosure.

I therefore urge boards and directors to think about how you can set the right tone from the top, inculcate the right values, and cultivate the right culture within your organisations.

I’ll leave you with a quote from Rohini Nilekani, an Indian writer and author, I quote – “We cannot be mere consumers of good governance, we must be participants; we must be co-creators.” – Unquote!

So, let’s all engage as co-creators of good governance!

Thank you for your kind attention!