Corporate Governance and the Management of Public Corporations: A Study of Akwa Ibom Water Company Limited

Michael E. Ekpo & Ubong E. Umoh

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Abstract

This study examined the corporate governance process and management of public corporations in Akwa Ibom State regarding Akwa Ibom Water Company Limited (AKWCL), its problem of non-compliance with Codes of Corporate Governance which resulted in low performance of the company and its inability to meet the MDGs 50% targeted access to water needs of the citizens. Stakeholder and Structural Functionalism theories were adopted to analyze the functional roles of the managers and stakeholders towards improving performance. Descriptive research was employed and secondary data were analyzed contextually. The study, among others, revealed that: non-compliance to the codes/principles of corporate governance in AKWCL impacted negatively its performance in terms of the volume of water supply. Data showed 66.01% population of the state had no access to water in 2015 while 65% population had no access to water in 2021; weak internal control mechanisms such as auditing, monitoring and evaluation committees contributed to rent-seeking activities by the board of directors/managers which negatively affected access to safe water supply, profitability and investment in AKWCL. The study concluded that a good corporate governance process guarantees high performance, and recommended strict enforceability of codes of corporate governance practice in AKWCL; policy review by the board of directors of AKWCL to improve access to safe water in the state; the creation of more water distribution points and revitalisation of abandoned ones; training and re-training of the board of directors and managers on new management skills; strengthening of auditing, monitoring and evaluation committees to ensure public accountability and disclosure.

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