President John Dramani Mahama has informed state-owned enterprises (SOEs) that the government will either merge, privatise, or shut down those that are running at a loss as part of efforts to enhance public sector efficiency and ensure economic sustainability.
He announced that the government will no longer bail out SOEs; hence, the need for them to improve upon their finances.
Addressing Chief Executive Officers (CEOs) of SOEs on Thursday, March 13, 2025, President Mahama underscored the need for financial discipline and improved performance among state-run businesses.
He stressed the government will no longer tolerate inefficiencies that place an unnecessary strain on the national economy.
“Loss-making SOEs will no longer be tolerated. They will be swiftly reformed. They will be merged, privatised, or shut down.’’
Meanwhile, Finance Minister Dr. Cassiel Ato Forson, speaking at the same event, singled out the Electricity Company of Ghana (ECG) and the Ghana Cocoa Board (COCOBOD) as the two most struggling state-owned enterprises (SOEs).
In his remarks, he said some of the SOEs are posing significant fiscal risk to the economy, and the two most threatening and most worrisome are the Electricity Company of Ghana (ECG) and the Ghana Cocoa Board (COCOBOD).
To reverse this trend, he said, we must implement a bold turnaround strategy that transforms lost SOEs into financially viable self-sustained institutions. The strategy will include capacity-building initiatives to strengthen leadership and operational efficiency. The second would be the enhancement of corporate governance training to ensure strict regulatory compliance in all SOEs. The third is financial discipline and strategic decision-making to restore profitability.
‘’Mr. President, the Public Financial Management Act, Act 2016, (Act 921) outlines a clear financial management and reporting requirement for all SOEs. Section 95 of the Act mandates that SOEs must prepare annual accounts not later than two months at the end of each financial year. SOEs must submit audited financial statements to the Minister within four months after the end of their financial year. Moving forward, the Ministry of Finance will be working closely with SIGA to ensure strict compliance with this regulatory requirement.’’
By: Rainbowradioonline.com/Ghana
