Enron was a U.S. energy-trading and utilities company that perpetuated one of the biggest accounting frauds in history. Enron's executives employed accounting practices that falsely inflated the company's revenues, which, at the height of the scandal, made the firm become the seventh- largest corporation in the United States. Once the fraud came to light, the company quickly unraveled and filed for bankruptcy under the United States Bankruptcy Act in December 2001. Enron used Wall Street magic to transform energy supplies into financial instruments that was traded online like stocks and bonds. More than $60 billion was lost and 4,000 jobs were lost.

In Ghana, the banking sector clean-up exercise which began in August 2017 has resulted in the revocation of the licenses of 9 universal banks, 347 microfinance companies, 39 microcredit companies, 15 savings and loans companies, eight finance house companies, and two non-bank institutions, costing tax payers in Ghana over GH21 billion. Over 6,000 direct jobs lost is a conservative estimate which does not taken into account temporary jobs lost. The receivers of Defunct banks (uniBank Ghana Ltd, UT Bank, Capital Bank, Royal Bank, Construction Bank, Beige Bank and Heritage Bank) have started legal proceedings against 50 directors and shareholders for their roles in the collapse of the banks but have so far failed to secure any convictions.

A Special Investigative Team (SIT) set up to probe financial crimes in the country has also referred many dockets on some members of staff of the defunct banks to the Attorney-Generals Office for advice and possible prosecution. The receivers, Messrs Nii Amanor Dodoo of KPMG, Vish Ashiagbor and Eric Nana Nipah, both of PricewaterhouseCoopers (PwC), are also pursuing 31,000 customers of the failed banks to recover more than GH10 billion in loans and advances.

Many Ghanaians have expressed worry that failure of the State to hold the directors and shareholders of these defunct financial institutions accountable will embolden others which may ultimately result in similar schemes in the future. Meanwhile, the Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, speaking at the Ghana CEO Summit called for the establishment of special courts to hasten the pace of the loan recovery process and bring finality to the many cases brought against some directors and shareholders of the defunct financial institutions. Without an efficient judicial system that is prepared to deal with cases in a swift and decisive manner, all the work done in sanitising the banking system will not yield the desired results and expected outcomes, Dr. Addison stated.

Required: (Turnitin report, similarity index not more than 25%)

Discuss fully with typical examples the respective responsibilities of stakeholders in corporate governance using the case of Ghanas banking sector clean-up, referencing the case of Enron collapse. For each stakeholder, discuss the expected responsibilities and what each stakeholder did to cause the collapse of Enron.

1. Auditors
2. Board of directors
3. Audit committees
4. Senior management
5. Employees
6. Financial analysts
7. Bank of Ghana and other regulatory agencies