Mahama Warns Loss-Making SOEs: Restructure, Privatize, or Shut Down
President John Dramani Mahama has issued a strong warning to State-Owned Enterprises (SOEs) that continue to operate at a loss, emphasizing that they will face restructuring, privatization, or closure if they fail to improve their financial performance. Speaking at a meeting with SOE Chief Executive Officers, organized by the State Interests and Governance Authority (SIGA), he made it clear that inefficiency, financial mismanagement, and corruption would no longer be tolerated under his administration. He further stated that boards and management teams responsible for poor decisions would be held accountable, with some facing removal if necessary. His goal is to ensure that SOEs contribute meaningfully to national development rather than being a drain on government resources.
The President referenced the 2023 State Ownership Report, which highlighted the alarming levels of inefficiency among many SOEs, some of which recorded their worst performances in decades. He particularly noted that key institutions such as the Electricity Company of Ghana (ECG), Ghana Grid Company, Ghana Water Company, the Ghana Cocoa Board, and the Ghana National Petroleum Corporation must step up their roles in economic development. To address these challenges, Mahama announced reforms granting SIGA more authority to enforce performance contracts, conduct independent audits, and issue binding directives to struggling enterprises. Additionally, he mandated that all SOE CEOs submit audited financial statements by April 30 each year, warning that failure to comply would result in sanctions, including possible dismissal.
Mahama's decisive stance underscores his administration’s commitment to revitalizing the public sector and ensuring economic sustainability. By eliminating waste and enforcing strict accountability measures, he aims to transform SOEs into profitable and efficient entities that can drive national growth. His approach signals a shift towards greater transparency, efficiency, and responsible financial management within the public sector. If effectively implemented, these reforms could significantly strengthen Ghana’s economy and restore public confidence in state enterprises.
