ICAC chief urges enterprises to enhance corporate governance in facing financial tsunami
2008-12-8
ICAC Commissioner, Dr Timothy Tong Hin-ming, urged listed companies and enterprises to enhance corporate governance and integrity building in facing grave challenges brought by the financial tsunami.
“We believe the financial crisis had raised warnings about various corporate governance issues,” he said.
In his welcoming remarks at the “Conference on Corporate Governance in the Financial Sector” today (Monday), Dr Tong said ICAC cases involving listed companies in the wake of Asian financial turmoil were mainly related to failure of top management to lay down ethical standards for the corporations or personal integrity of corporate leaders.
In some cases, these corporate leaders had sought personal gains on the pretext of fulfilling the corporations’ aspirations, he added.
Other problems revealed involved the absence of a sound ethical framework or lack of effective supervision.
“Each corporate corruption and fraud scam impairs the interests of investors and the confidence of market stakeholders, and erodes Hong Kong’s leading position as an international financial hub,” Dr Tong said.
Speaking after the opening ceremony, Dr Tong added that in the past five years, the ICAC had prosecuted about fifty senior executives from listed companies, including chairmen, chief executive officers, directors, and other professionals for corruption an d related offences which involved HK$3 billion in total.
Jointly organised by the ICAC, the Ministry of Supervision (MoS) and the Commission Against Corruption of Macao (CCAC), today’s Conference was attended by about 300 corporate leaders and representatives of regulatory bodies. Supporting organisations include local regulatory and professional bodies, and major chambers of commerce.
Officiating at the opening ceremony of the Conference were: MoS Vice Minister, Mr Yao Zengke; CCAC Commissioner, Mr Cheong U; Secretary of Financial Services and the Treasury, Professor K. C. Chan; and representatives of supporting organisations.
Addressing the Conference, Professor Chan pointed out that good corporate governance helped stabilise a clean financial market by enhancing the risk management capability and transparency of corporations.
Mr Yao delivered a keynote speech on the relationship between integrity management and sound development.
He highlighted the importance of strengthening regulation of the financial sector, integrity management and anti-corruption cooperation and exchanges among the three jurisdictions.
“In facing the financial crisis, Hong Kong and Macao should positively respond and make decisive policies to control systemic risks in order to minimise the negative impact on the economies,” he said.
“In preventing and tackling graft in the financial sector, all parties should join efforts to combat cross-boundary corruption and foster effective cooperation,” he added.
Speaking at the luncheon, Financial Secretary, Mr John C Tsang said that internal integrity management was pivotal even in mature markets with stringent regulations to cultivate a probity culture and implement good governance practices.
A corruption prevention guidebook for listed companies and a toolkit on directors’ ethics were launched at the Conference to assist corporate leaders to control corruption risks through effective internal supervision.
Meanwhile, the ICAC will continue to organise seminars and workshops for directors and professionals to heighten their corporate governance awareness.
“We believe the financial crisis had raised warnings about various corporate governance issues,” he said.
In his welcoming remarks at the “Conference on Corporate Governance in the Financial Sector” today (Monday), Dr Tong said ICAC cases involving listed companies in the wake of Asian financial turmoil were mainly related to failure of top management to lay down ethical standards for the corporations or personal integrity of corporate leaders.
In some cases, these corporate leaders had sought personal gains on the pretext of fulfilling the corporations’ aspirations, he added.
Other problems revealed involved the absence of a sound ethical framework or lack of effective supervision.
“Each corporate corruption and fraud scam impairs the interests of investors and the confidence of market stakeholders, and erodes Hong Kong’s leading position as an international financial hub,” Dr Tong said.
Speaking after the opening ceremony, Dr Tong added that in the past five years, the ICAC had prosecuted about fifty senior executives from listed companies, including chairmen, chief executive officers, directors, and other professionals for corruption an d related offences which involved HK$3 billion in total.
Jointly organised by the ICAC, the Ministry of Supervision (MoS) and the Commission Against Corruption of Macao (CCAC), today’s Conference was attended by about 300 corporate leaders and representatives of regulatory bodies. Supporting organisations include local regulatory and professional bodies, and major chambers of commerce.
Officiating at the opening ceremony of the Conference were: MoS Vice Minister, Mr Yao Zengke; CCAC Commissioner, Mr Cheong U; Secretary of Financial Services and the Treasury, Professor K. C. Chan; and representatives of supporting organisations.
Addressing the Conference, Professor Chan pointed out that good corporate governance helped stabilise a clean financial market by enhancing the risk management capability and transparency of corporations.
Mr Yao delivered a keynote speech on the relationship between integrity management and sound development.
He highlighted the importance of strengthening regulation of the financial sector, integrity management and anti-corruption cooperation and exchanges among the three jurisdictions.
“In facing the financial crisis, Hong Kong and Macao should positively respond and make decisive policies to control systemic risks in order to minimise the negative impact on the economies,” he said.
“In preventing and tackling graft in the financial sector, all parties should join efforts to combat cross-boundary corruption and foster effective cooperation,” he added.
Speaking at the luncheon, Financial Secretary, Mr John C Tsang said that internal integrity management was pivotal even in mature markets with stringent regulations to cultivate a probity culture and implement good governance practices.
A corruption prevention guidebook for listed companies and a toolkit on directors’ ethics were launched at the Conference to assist corporate leaders to control corruption risks through effective internal supervision.
Meanwhile, the ICAC will continue to organise seminars and workshops for directors and professionals to heighten their corporate governance awareness.