International Journal of Research and Innovation in Social Science (IJRISS) |Volume VI, Issue XI, November 2022|ISSN 2454-6186
Kayirangwa Germaine*, & Dr. Twesigye Daniel
University of Kigali, P.0 Box 2611 Kigali, Rwanda
*Corresponding author
Abstract: This aim of this study was to establish the effect of boards of directors in promotion of public sector accountability in Rwanda with reference to Rwanda Energy Group. The study’s specific objectives were: to assess the effect of board size on promotion of accountability in Rwanda Energy Group; to evaluate the effect board structure on promotion of accountability in Rwanda Energy Group; to ascertain the effect board independence on promotion of public sector accountability in Rwanda Energy Group; to establish board the effect board committees on promotion of public sector accountability in Rwanda Energy Group. The key primary source of data which is questionnaires were distributed to a group of 120 respondents whereas the REG annual reports were considered for documentary review. Firstly, findings revealed that 83.3% of the respondents strongly agreed that board size of the REG is virtuously determined based on the size of the corporation. Secondly, 96.7% of the respondents strongly agreed that the REG appointing authority can change boards structures of running their institutions based on players, public views or new innovations. Thirdly, 66.7% of the respondents strongly agreed that there is mandatory rotation of board of directors in REG to improve their independence and credibility. Furthermore, 81.7% of the respondents strongly agreed that board comminutes are formed out need to carry out the necessary charge at any point in time. Finally, the regression analysis results indicated that board size, board structure, board independence and board committees have strong relationship but insignificant contribution to the public sector accountability in Rwanda. Thus, the null hypotheses were not accepted. However, the board of directors in REG ought to ensure effective written and verbal communications within their structures; and the board of directors at REG ought to perform their duties freely and objectively.
Key Words: Board of directors, Performance, Accountability, Public sector, Rwanda.
I. INTRODUCTION
Corporations formed around the world today have boards of directors. However, to trace the roots of boards of directors one has to look back to the 17th century when large European companies had boards of directors, but fairly large businesses owned and operated by nonEuropeans did not. This suggests that the corporate board of directors originated in Europe (Clark, 2019). By historic origin, boards originally were the investors—the three or four affluent members who funded an energetic entrepreneur. The peculiarity between investors and boards developed over time as the number of investors grew