Improving the efficiency of development financial institutions in the region is one of the major goals of the Association of Development Financial Institutions in the Pacific (ADFIP).
A crucial step it has taken in this regard is training directors serving on development financial institution boards on how to manage their institutions and more importan tly, the practice of corporate governance.
The training, held in Fiji recently attracted 15 members from eight member countries—Kiribati, Tuvalu, Tonga, Samoa, Fiji, Solomon Islands, Marshalls and Papua New Guinea.
According to ADFIP, the training was conducted after it saw a need to educate board directors on these issues.
“It is important that directors are aware of their roles and the importance of good practices for development banks,” ADFIP executive officer, Amelia Baro said.
The directors two-day training involved sessions on the benefits of good governance, code of good governance, role and responsibilities of directors, board processes, committees of the board, independence of non-executive directors, independence of state mandated auditors and the ADFIP code of ethics for directors.
“Some of the directors were not aware of the various sub-committees within a board such as the governance committee, risk management committee and audit committee. So, overall it was a good learning experience,” she says.
The participants of the training workshop, conducted by Dr. Cesar Saldaña, founding fellow of the Philippine-based Institute for Corporate Directors who had run ADFIAP (Association of Development Financing Institutions in Asia Pacific) governance training programmes in the past, looked at—
• areas of improvement in corporate governance;
• criteria for rating improvements in corporate governance; and
• the role of directors in risk management.
The seminar is part of Phase 5 of the ADFIAP-CIPE development financial institutions for corporate governance that aims to institutionalise and continuously improve governance processes and policies of ADFIAP member-banks.
Founded in 1986 in French Polynesia, the ADFIP aims to provide a point of communication for member development financing institutions (DFIs) to disseminate information and exchange ideas for the improved functioning and efficiency of its members.
ADFIP has a membership of 15 development banks in the region.
Throughout the year, ADFIP has been conducting fully-funded training programmes for its members among many other activities.
However, an exciting prospect for ADFIP members is the launch of the European Technical Assistance Fund (ETAF) next month.
The ETAF is expected to enhance the services provided by the development banks in the region through the assistance of clients in the preparation of business plans and feasibility studies.
The European Investment Bank, which is also a member of the ADFIP, will be funding 75 percent of the ETAF while remaining 25 percent will be funded by ADFIP members.
