State-owned enterprises (SOEs) have received a stiff warning from President John Dramani Mahama that those that don’t improve will either be restructured, merged, privatized, or shut down.
At the State Interests and Governance Authority (SIGA) meeting with SOE CEOs on March 13, 2025, President Mahama emphasized that his administration would no longer put up with inefficiencies and financial mismanagement in state-owned businesses.
“Loss-making SOEs will no longer be tolerated, they will be swiftly reformed, merged, privatised, or shut down.”
“Corruption, procurement fraud, and financial mismanagement will be prosecuted strictly, and boards that rubber-stamp poor decisions will be replaced,” he declared.
The 2023 State Ownership Report, which the President cited, showed that many state entities 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.
“Our SOEs must drive industrialisation, create jobs, and expand economic opportunities,” he said. “They must deliver real value, particularly in energy, transport, 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 statements by April 30 of each year.
“We have made real progress in less than 120 days, but this is just the beginning, together, we shall reset our economy and build a stronger future for our country,” he reiterated.
Source: newsthemegh.com