CORPORATE GOVERNANCE

Since its inception, KGRTC has been governed by a Board of Trustees.

The KGRTC’s Board of Trustees’ role can be defined in different ways. In its Principles of Corporate Governance, the Organisation for Economic Co-operation and Development (OECD) has stated that:

“Together with guiding corporate strategy, the Board is chiefly responsible for monitoring managerial performance and achieving an adequate return for shareholders, while preventing conflicts of interest and balancing competing demands on the corporation.

In order for boards to effectively fulfill their responsibilities they must be able to exercise objective and independent judgment. Another important board responsibility is to oversee systems designed to ensure that the corporation obeys applicable laws, including tax, competition, labor, environmental, equal opportunity, health and safety laws.”

The KGRTC Board of Trustees comprised of representation from electricity utilities from Malawi, Tanzania, Uganda, Swaziland, Zimbabwe and Zambia, representatives of the Zambian Ministries of Energy and Water Development, Science and Technology and Universities has governed KGRTC through corporate governance instruments such as the KGRTC Trust Deed and the KGRTC – Zesco Memorandum of Understanding (MOU).

The KGRTC Board of Trustees have specific duties of which some are:

 1. Developing the company’s purpose, vision, values

The Trustees have developed a Vision, Mission and Quality Policy Statement so that the entire Training Centre understands the strategic direction.

2. Guiding strategy

The Trustees approve the company’s strategy, major strategic recommendations, company policies, annual budgets, and business plans. The Trustees have regularly helped to establish and monitor the implementation of corporate and performance objectives, and oversee major capital expenditures.

3. Overseeing management

The Trustees have been involved in selecting, appointing, motivating, overseeing, and, where necessary, replacing the CEO. It has been a practice for KGRTC Trustees to ensure that succession plans are in place that have enabled KGRTC to develop and change leadership in a progressive, planned, and non disruptive manner.

4. Monitoring effectiveness in the company’s governance practices

The Trustees have had the responsibility to monitor the company’s governance framework, policies, procedures, and practices. This has been done through the Committees of the Board.

5. Ensuring appropriate controls

The Trustees have been responsible for establishing appropriate controls that work effectively. These include ensuring the integrity of: the Trusts’ accounting and financial reporting

6. Overseeing disclosures, other communications

The Trustees have had the responsibility to ensure that stakeholders and clients receive all appropriate information (“material news”) about KGRTC, on a timely, fair basis.