Mahama’s charge to indebted SOEs too general – One-time independent presidential aspirant

A one-time independent presidential aspirant, Marricke Kofi Gane has told President John Dramani Mahama that he made a general statement regarding the 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 outlined 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.

 

But in a Facebook post reacting to this development, Marricke Gane  said that this is too general a charge to failing and often politicised SoEs that have to varying degrees, veered off their core businesses. I expected more.

“I think SIGA should be made to be a bit more intentional with strategizing and to crack the whip where need be over the next 6 months…Get SIGA, to determine with the Minister of Finance, the 24Hr Economy Secretariat and others, on WHAT SPECIFIC deliverables and outcomes are required from these SoE Heads, in order to drive the bigger Reset Economic Agenda.

“That way, there are no assumptions and the SoEs can build their company-specific strategies around or at least factor into them these expectations, deliverables and outcomes, knowing very well that achieving their organisational strategies will also positively drive the bigger Reset Economic Agenda (Whatever that is). Secondly, it makes it clear what performance standards CEOs and Boards of SoEs will be judged by in determining if they should be sacked or not.”

He added “These general statements will not get SoEs to focus on the things that matter enough to drive the bigger economic agenda… it will most likely push them into survival mode to focus on saving their jobs instead of being part of a bigger visionary accomplishment. We have to LINK everything together. These Silo Silo operations of Public Machineries haven’t helped us much.”

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

The post Mahama’s charge to indebted SOEs too general – One-time independent presidential aspirant first appeared on 3News.

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