President John Dramani Mahama has announced a decisive stance on loss-making State-Owned Enterprises (SOEs), declaring that they will no longer be tolerated under the current government’s economic strategy.
Speaking at a recent meeting with the CEOs of SOEs, Mahama made it clear that any underperforming SOEs would face swift reform, mergers, privatisation, or even shutdown.
In a bold move to ensure greater accountability and efficiency in state-run entities, President Mahama revealed that the State Interests and Governance Authority (SIGA) will now operate as a command centre with enhanced executive powers. SIGA will be responsible for negotiating and enforcing performance contracts with heads of entities and ensuring that all SOEs meet rigorous financial and operational standards.
Key Measures Announced
1. Performance Accountability
SIGA will enforce binding performance contracts with heads of SOEs, holding them accountable for delivering on targets.
2. Regular Assessments and Independent Audits
In-depth assessments of SOE finances will be conducted regularly, with independent audits commissioned to expose inefficiencies and financial mismanagement.
3. Direct Intervention and Compliance
SIGA will intervene directly in underperforming entities, issuing binding directives and implementing compliance mechanisms to ensure improvement.
4. Strategic Value for National Development
President Mahama emphasized that SOEs, especially those in energy, transport, agriculture, and finance, must contribute to Ghana’s industrialisation and the 24-hour economy initiative, delivering stable electricity, water, and transport services to citizens.
Furthermore, Mahama stated that corruption, procurement fraud, and financial mismanagement within SOEs would be prosecuted strictly, and boards that endorse poor decisions would be replaced.
He also addressed the need to stop the practice of using SOE resources to indemnify board members from accountability.
“This is a turning point for Ghana’s state-owned enterprises,” Mahama said.
“The days of allowing loss-making SOEs to persist are over. These entities must be reformed, merged, or shut down if they do not meet the standards necessary for our nation’s progress.”
By: Shadrack Odame Agyare | Metrotvonline.com | Ghana
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