The Institute of Directors of Zambia (IoDZ) has expressed concern over the growing trend of Board Chairpersons and Board Members resigning only to immediately assume the role of Chief Executive Officer (CEO) within the same organisations they were meant to oversee.
The Institute says the trend has been noted at Zambia Tourism Agency, Zambia Railways Limited, Cotton Board of Zambia and now ZCCM – IH.
In a statement issued to RCV News in Lusaka today, IoDZ President Miriam Chiyaba said the trend represents a serious violation of acceptable corporate governance principles and a breach of ethical leadership standards.
She said these transitions compromise the integrity of oversight, distort succession planning and undermine stakeholder trust.
“When a Board Chair designs and approves corporate strategy and later executes it as CEO, it raises serious concerns about conflict of interest, impartiality and concentration of power,” said Ms. Chiyaba.
Ms. Chiyaba said such conduct contravenes Article 8(e) of the Constitution of Zambia, Amendment Act No. 2 of 2016, which prescribes good governance and integrity among the national values and principles to guide national and economic development, and Clause 17 of the LuSE Corporate Governance Code, which mandates that the roles of Chairperson and CEO be held by separate individuals.
She has called on regulators, institutional investors and shareholder bodies to take decisive action to curb this malpractice and to embrace transparent, merit-based succession planning that is free from conflict of interest.
By Margaret Mwanza
