Former Prime Minister and Managing Director of Tibiyo Taka Ngwane, Dr. Absalom Themba Dlamini, has identified dysfunctional boards of directors as a primary risk to organizational survival, warning that “10 deadly sins” of governance are threatening Eswatini’s corporate stability.
In an address delivered by Central Bank Governor Dr. Phil Mnisi at a REDI-hosted breakfast meeting, Dr. Dlamini cautioned that boards meant to protect organizations are often becoming their greatest liabilities. The warning served as a high-level call for executive and non-executive directors to move beyond “rubber-stamping” management and embrace rigorous, independent oversight to safeguard the nation’s socio-economic ecosystem.
Dr. Dlamini emphasized that corporate governance is a practical tool for balancing individual and societal objectives with economic goals, rather than just a theoretical concept. He noted that failure in these areas leads to systemic issues such as corruption, poor service delivery, and the use of public institutions for self-enrichment.
Addressing an audience of executive and non-executive board members and corporate leaders from diverse industries, Dr Mnisi focused on the theme “Corporate Governance: When the Board Becomes a Risk to the Organisation – The 10 Deadly Sins.” He emphasised that corporate governance is not merely a compliance requirement, but a framework for aligning individual and societal objectives with economic and social goals.
“When applied correctly, corporate governance provides sustainable solutions to a litany of board and management-level challenges, including strengthening the socio-economic ecosystem,” Mnisi said. He noted that poor governance can lead to corruption, weak service delivery, and institutional dysfunction across both public and private sectors.
The 10 Deadly Sins of Corporate Governance
Dr Mnisi outlined ten critical governance failures that boards must vigilantly avoid:
- Rubber-stamping management – Boards that approve executive decisions without scrutiny fail their fiduciary duty, eroding accountability.
- Lack of independence – Over-influence by CEOs or dominant personalities prevents objective decision-making.
- Poor understanding of the business – Directors without insight into operations and industry dynamics cannot provide meaningful guidance.
- Weak financial oversight – Failure to interrogate financial statements or audit findings allows fraud or misstatements to go undetected.
- Ignoring risk management – Boards that overlook strategic, operational, regulatory, and reputational risks leave organisations vulnerable to crises.
- Dysfunctional board dynamics – In-fighting, politics, or disengagement delay decisions and undermine effectiveness.
- Lack of accountability – Boards that fail to hold themselves and management responsible weaken governance structures.
- Failure in succession planning – Neglecting leadership continuity risks organisational instability during transitions.
- Short-term focus – Prioritising immediate financial gains over long-term sustainability threatens the organisation’s future.
- Ethical blind spots – Tolerating unethical behaviour, conflicts of interest, or compliance breaches can cause reputational and legal consequences.
Dr Mnisi emphasised the need for boards and managers to be oriented on governance principles at the start of their tenure and for enforceable codes of conduct and policies to be mainstreamed throughout organisational culture. He urged leaders to adopt frameworks such as the King Reports, which link strong governance with value creation and ethical leadership.
The Governor concluded by warning that governance failures are not abstract concerns but have tangible consequences, from corruption and inefficiency to weakened institutional performance. He challenged board members to reflect on their own practices and urged vigilance against internal threats that could undermine the organisations they lead.