The State Interest and Governance Authority (SIGA) has announced a reduction in the losses incurred by State-Owned Enterprises (SOEs) by GH¢9 million for the 2023 financial year.
This reduction signifies an 83.13 percent decrease from the previous net loss of GH¢14,402,000 in 2022 to GH¢2,573,000 in 2023.
At the launch of the 2023 State Ownership Report in Accra, SIGA’s Director General, John Boadu, highlighted that the Auditor General had also reported a 46 percent decrease in irregularities and infractions among Specified Entities (SE) in the 2023 audited accounts of public boards, corporations, and other statutory institutions.
Boadu noted that although some losses were recorded in the 2023 fiscal year, 90 percent of these losses were deemed recoverable.
He outlined that the Authority is implementing various reforms and measures to facilitate a net transfer of funds from SOEs to the government. Additionally, SIGA aims to safeguard and enhance the profitability of the government’s investments, totaling approximately GH¢800 billion, in Specified Entities (SE).
While acknowledging that not all SOEs are designed to generate profits, Boadu emphasized the importance of their continued relevance and the need to ensure that any losses incurred are justifiable. He also pointed out that some losses stemmed from investments that would take time to yield returns.
“For instance, if the Electricity Company of Ghana (ECG) should invest about GH¢5 million into a non-commercial area, it would take a very long time to recoup,” he intimidated.
John Boadu detailed the data utilized in crafting the report, noting that it was based on 60 audited financial statements and 87 management accounts from the SOEs.
He explained that the report was developed in alignment with the standards set by the World Bank-sponsored Public Financial Management for Service Delivery (PFM4SD) Programme. This effort aims to support the execution of the Government’s Public Financial Management Reform Strategy and enhance oversight, performance management, and fiscal discipline within the SOEs.
Themed “Inclusive Growth and Value Addition: The Role of Specified Entities,” the 2023 SOR, underscores SIGA’s pledge to align the SOEs with the government’s 2023 agenda to restore and sustain macroeconomic stability through inclusive growth and value addition under the Post-COVID-19 Programme for Economic Growth (PC-PEG).
Boadu noted that the theme captures the essence of SIGA’s mission to harness the potential of SOEs to contribute meaningfully to Ghana’s economic recovery and growth.
“The Report reflects the Government’s commitment to transparency and accountability in the public financial management of our country,” he said.
The report features dedicated sections on government transactions, fiscal risk exposures, climate-smart initiatives and investments, as well as gender representation, especially at the Management and Board levels.
The 2023 report encompasses 147 entities, representing 84% of the 175 listed in the Cabinet-approved SIGA Entity List.
These 147 entities include 53 State-Owned Enterprises (SOEs), 31 Joint Venture Companies (JVCs), and 63 Other State Entities (OSEs).