Government Urges Integrated Governance, Audit Professional Accountability

Ministry of Information and Media permanent secretary Thabo Kawana in Zambia recently emphasized the critical need for governance and internal audit professionals to integrate their operations and collaborate more effectively.

Speaking in Livingstone, Kawana highlighted the government's view that these professionals must move away from isolated operations due to the increasing complexity of institutional challenges. He called for integrated leadership, shared accountability, and coordinated action, stressing the importance of breaking down institutional silos, upholding integrity, and fostering collaboration. This statement signals a clear governmental expectation for a more holistic approach to corporate and institutional oversight.

This directive, coming from a senior government official, carries significant legal and practical implications for practitioners and businesses in Zambia. It suggests a potential shift in regulatory expectations and enforcement focus, where regulators may increasingly scrutinize the integration and effectiveness of governance and audit functions, rather than just their mere existence. For businesses, this implies a need to review their internal structures and ensure that governance, risk, and audit functions are not merely compliant on paper but are actively collaborating to manage risks, ensure accountability, and enhance institutional resilience. It underscores the government's commitment to improving integrity and efficiency across sectors.

While the excerpt does not cite specific statutes, Kawana's call aligns with broader regulatory frameworks in Zambia, such as the Companies Act, No. 10 of 2017, which mandates certain governance structures, and various financial sector regulations overseen by bodies like the Bank of Zambia and the Securities and Exchange Commission, which emphasize robust internal controls and risk management. Public sector entities are similarly governed by public finance management acts and audit legislation. Kawana's remarks can be interpreted as a high-level policy directive influencing the interpretation and enforcement of these existing laws and regulations, pushing for a more integrated and proactive approach to compliance and risk management.

Attorneys advising corporate clients, particularly those in regulated industries or public sector entities, should proactively counsel on strengthening inter-departmental collaboration between governance, risk, compliance, and internal audit functions. Businesses should review their internal charters, policies, and reporting lines to ensure they reflect an integrated approach to risk management and accountability, moving beyond siloed operations. Monitoring future policy statements or regulatory guidance from relevant ministries and oversight bodies will be crucial to understand how this emphasis translates into concrete requirements or enforcement actions, potentially leading to new compliance obligations or increased scrutiny.