Corporate governance in state-owned enterprises in Lesotho

Abstract

PurposeThe purpose of this study is to discuss corporate governance in state-owned enterprises (SOEs) in Lesotho to influence policy debates.Design/methodology/approachThis is a desktop study that used the qualitative research approach. For this research, the case study method has been adopted. In terms of orientation, this is descriptive research. Data were collected from three-tiered sources: independent publications (e.g. World Bank); government publications; and newspaper articles. Data analysis was in the form of document analysis.FindingsThe study concluded that there are instances of poor and/or bad governance in SOEs in Lesotho. Egregious examples include transgressing against the Public Financial Management Act (2011) and the failure to submit Audited Financial Results.Research limitations/implicationsThe findings are limited to a specific case. Nonetheless, there are general lessons that can be drawn for African countries from the case study. A key general lesson is the imperative need to reconfigure the legal-institutional architecture of SOEs so that they create public value.Practical implicationsOther than cataloguing instances of poor and/or bad governance in SOEs in Lesotho, the paper goes further and accordingly makes policy recommendations to enhance corporate governance in SOEs in Lesotho.Originality/valueThere is no academic study on corporate governance in SOEs in Lesotho; therefore, there is a gap in the literature. Hence, the study makes an original contribution to the literature.