Loss-making SOEs will no longer be tolerated – Mahama warns CEOs of entities under SIGA

President Mahama has issued a stern warning to entities under State Interests and Governance Authority (SIGA) including State-Owned Enterprises (SOEs) in a move to transform his government and ensure accountability.

The President at a meeting with Chief Executive Officers of State-Owned Enterprises on Thursday, March 13 outlined a number of reforms to ensure that non-performing SOEs make profit including privatization, a merger or a shutdown.

“Loss-making SOEs will no longer be tolerated. They’ll be swiftly reformed, merged, privatized or shutdown,” he declared.

President Mahama further announced his government’s commitment to clamp down on corruption, financial mismanagement among heads of SOEs as well as do away with the phenomenon where heads of SOEs use state resources for personal gain.

“Corruption, procurement fraud and financial mismanagement will be prosecuted strictly and boards that rubber stamps poor decisions will be replaced. The practice also of and in a few cases using entity resources and funds to indemnify board members from accountability must cease immediately,” the President added.

“SOEs must deliver strategic value particularly in energy, transport, manufacturing, agriculture and finance to support Ghana’s industrialization and the 24-hour economy initiative,” he stressed.

The President’s firm decision comes on the back of numerous corruptions, procurement fraud and loss making by State-Owned Enterprises in recent years.

President Mahama outline a number of measures to transform non-performing state entities which he said the State Interests and Governance Authority (SIGA) will be at the centre of this transformation to evolve from a passive observer into an empowered enforcer of national interest.

These measures include;

1. SIGA will act as a command centre and will be equipped with executive authority to negotiate and enforce performance contract with heads of entities.
2. Conduct regular in-depth assessment of SOEs finances ensuring transparency and exposing mismanagement.
3. Issue binding directives and implement compliance mechanisms and intervene directly in underperforming entities.
4. Commission independent audits to identify inefficiencies and financial leakages.
5. Set and monitor performance metrics with tangible consequences for non-performance.

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