The state-owned businesses (SOEs) that do not improve their performance will be restructured, merged, privatized, or shut down, according to a harsh warning from President John Dramani Mahama.
President Mahama emphasized that his administration will no longer put up with financial mismanagement and inefficiency inside state companies during a meeting with SOE CEOs hosted by the State Interests and Governance Authority (SIGA) on March 13, 2025.
He said, “Loss-making SOEs will no longer be tolerated.” They will either be shut down, merged, privatized, or transformed quickly. Financial mismanagement, procurement fraud, and corruption will all face harsh penalties, and boards that approve bad choices will be dismissed.
The 2023 State Ownership Report, which the President cited, showed that many state institutions were inefficient and that several were operating at their lowest levels since the start of Ghana’s Fourth Republic.
He emphasized the need for SOEs like the Ghana National Petroleum Corporation, Ghana Grid Company, Ghana Water Company, Ghana Cocoa Board, and the Electricity Company of Ghana (ECG) to be more active in promoting economic growth.
He declared, “Our SOEs must promote industrialization, generate employment, and increase economic opportunities.” “They need to provide tangible benefits, especially in the fields of energy, transportation, manufacturing, agriculture, and finance.”
Mahama announced changes that would increase accountability by giving SIGA more authority to enforce performance agreements with SOE leadership, carry out financial evaluations to guarantee openness, give legally binding orders to troubled organizations, commission independent audits to monitor financial effectiveness, and enforce penalties for subpar performance.
He cautioned against complacency, saying that poor management and financial irresponsibility will not be tolerated. In order to avoid penalties, including termination, he ordered all SOE CEOs to produce audited financial accounts by April 30 of each year.
“In less than 120 days, we have made significant progress, but this is only the beginning,” Mahama declared. “Together, we will rebuild our economy and create a more robust future for our nation.”
visit itrotronews everyday for updates