SIR - You hit the right notes with your captioned feature on how boards kill institutions. I am a banker and not happy with the composition of our board. I recently learnt that Bank of Uganda vets all candidates at senior level in all financial institutions in the country. I don’t understand the criteria BoU uses to approve such board appointments, but looking at our board, you wonder what some people are doing on the board. Some of them are supposed to be retired and clearly they add no value to the company.
To date, the criterion our bank board uses to evaluate performance is frequency of attending board meetings. Now, these old people have nothing else to do; so, they will never miss a single meeting. Despite the bank being highly automated, there are no proper skills to ensure effective value addition. Accordingly, the managing director has prevailed on the members and they cannot do any effective oversight. There is need for an external arm to evaluate the competencies and criteria BoU uses to approve board appointments; otherwise, it appears to be criteria of promoting benefaction in financial institutions. And this portends bad future for the growth of the industry in the long-term.
Name withheld on request,