Corporate governance mechanisms and performance of public sector entities in Uganda: The case of Uganda National Roads Authority.

Abstract

The general objective of the study was to establish the extent to which Corporate Governance Mechanisms influence the Performance of public sector entities in Uganda, taking the case of Uganda National Roads Authority. The specific objectives of the study included; to establish the relationship between board composition and performance of UNRA, to establish the extent to which board empowerment influences the performance of UNRA, to establish the extent to which corporate reporting influences the performance of UNRA. The study used a cross-section design using both qualitative and quantitative approaches on a sample of 71 UNRA staff from all its directorates. Data was collected using a questionnaire, interview and documentary review. The study found out that board composition significantly influences the performance of public sector entities. It was also found that board empowerment significantly influences the performance of public sector entities. It was further found out that corporate reporting significantly influences the performance of public sector entities. The study concluded that public sector boards were not adequately constituted into comprehensive board committees yet there were noticeable knowledge and skills gaps which adversely affects organisational performance. It was also concluded that public sector board had limited power to influence the strategic direction of entities which negatively affects performance of the public sector entities. The study further concluded that public sector entity’s corporate reporting mechanisms were still weak and constrained performance of the entities. From the study, it is recommended that: i) at minimum, board committees should be constituted to handle matters relating to audit, remuneration, and nominations. ii) The statutes where public entities derive their mandate and powers should be revisited by the relevant organs of government to vest powers of deciding the strategic direction and objective in the entity’s board. iii)The power to appoint, reappoint or terminate the Chief Executive Officer (ED) should be fully delegated to the boards iv) UNRA should adopt the use of multi-media communication avenues and integrate its corporate reports.