Illovo Sugar (Malawi) plc board chairperson Jimmy Lipunga says the firm has the capacity to handle recruitment of managing director (MD), saying there is a possibility of outsourcing the services at a later stage.
His comments follow sentiments by some observers who faulted the Malawi Stock Exchange-listed firm’s decision to use internal structures in the recruitment of MD, arguing it could compromise fairness, transparency and corporate governance.
But Lipunga in an interview on Sunday said Illovo is a multinational group with good corporate governance record and strong capacity to handle recruitment.
“The board will see the applicants at a certain stage. If there will be more internal applications, we can involve our regional partners, but in case some from the region also applied, we can use the third party to ensure fairness,” he said.
Finance and corporate governance expert Brian Kampanje said on Sunday although it is not wrong to use the human resources department, it is important to involve the remuneration and appointment committee of the board as the position is big.
Minority Shareholders Association of Listed Companies secretary general Frank Harawa said they expect proper handling from both management and the board.
Illovo is recruiting the MD following the departure of Lekani Katandula, who has been appointed ABF Sugar chief finance officer based in the United Kingdom.
