At Kempinski today, President John Mahama is engaging Chief Executive Officers of specified entities for restting and realignment.
President Mahama is expected to share his vision for resetting and realigning SOEs to ensure they operate with greater efficiency and effectiveness.
This initiative is part of broader efforts to enhance the role of SOEs in driving Ghana’s economic growth.
Director-General of the State Interest and Governance Authority (SIGA), John Boadu, has revealed that the government is working on diversifying its stakes in several state-owned enterprises (SOEs).
Mr. Boadu explained that this move would give Ghanaians the opportunity to invest in these institutions by purchasing shares.
He made this announcement during the fourth annual general meeting of TDC Ghana Limited, stating that… “The government is preparing itself to diverse its interest in most SOEs, 100 percent ownership for what, and the people of this country are also ready to invest in these entities.”
He pointed out that in many developed countries, governments hold minimal shares in their SOE sectors, which helps ensure that qualified individuals are appointed to the board.
He further added: “You are not limited to costs that must be paid by the government, and you must pay those costs that ensure that you are not able to make the required profits.
Discussing TDC’s operations, Mr. Boadu praised the company for its achievements in recent years, emphasizing that it is now time for state-owned limited liability entities to actively compete in their respective markets.
The SIGA Director-General reminded TDC that it has the capacity to borrow with government backing, as long as its financial position is sound.
On the issue of providing affordable housing to Ghanaians, he remarked that for TDC to offer such housing and remain viable, “the government must take the difference so they can survive; that’s how it works elsewhere.”
Mr. Kofi Brako, the Board Chairman of TDC, has called on the government to involve TDC in more affordable housing projects to help address the challenges in the sector and drive its growth.
He highlighted that Ghana’s real estate sector remains one of the fastest-growing industries, with consistent growth over the years, ranging between eight and 10 percent.
This growth, he explained, has been driven by the country’s increasing population and urbanization trends. However, despite these positive developments, Ghana still faces a significant housing deficit, currently estimated at 1.8 million units.
The contribution of State-Owned Enterprises (SOEs) to Ghana’s Gross Domestic Product (GDP) has reached 10% in 2024, marking a significant rise from previous years, President Nana Akufo-Addo has announced.
He made this revelation during the 2024 State Interests and Governance Authority (SIGA) Annual Stakeholders Engagement held at the Rock City Hotel in Kwahu-Nkwatia, Eastern Region under the theme, “5 Years of Championing Specified Entities’ Governance and Growth: The Challenges and The Way Forward.”
“I am proud to report that the contributions of our state-owned enterprises to the nation’s GDP have steadily increased from 3% in 2020 to 6% in 2021, and reaching 10% in 2024,” President Akufo-Addo said.
He further highlighted the remarkable decrease in operational irregularities and financial losses among SOEs. “The average losses of state-owned enterprises have fallen sharply from 14.4 billion cedis in 2022 to 2.6 billion cedis in 2024,” he added.
SIGA announced a reduction in the losses incurred by SOEs by GH¢9 million for the 2023 financial year, signifying an 83.13 percent decrease from the previous net loss of GH¢14,402,000 in 2022 to GH¢2,573,000 in 2023.
According to the President, the establishment of SIGA under the SIGA Act 2019 has been instrumental in enhancing the governance, transparency, and accountability of SOEs. He noted that this has not only improved the overall performance of these entities but has also significantly reduced their financial losses.
The President emphasized that the improved performance of SOEs is aligned with his administration’s vision of building a “Ghana Beyond Aid,” in which public enterprises operate efficiently, contributing significantly to national development.
At the event, SIGA’s Director General, John Boadu, also applauded the progress made in compliance and financial reporting among SOEs. He pointed out that prior to SIGA’s establishment, only 16 out of 175 specified entities had filed their financial statements and management accounts, and just two had filed audited financial reports.
“In contrast, today, 147 specified entities have filed both their audited financial statements and management accounts as of May 2024,” Boadu revealed.
Despite the positive developments, Dr. Kwabena Donkor, Chairman of the Parliamentary Committee on Public Administration and State Interests, raised concerns over the non-compliance of some SOEs, particularly the Tema Oil Refinery (TOR), which has failed to publish its audited accounts since 2017 despite receiving recognition from SIGA.
He called for a review of how SOE executives are appointed and a stronger emphasis on financial accountability, saying, “We cannot celebrate mediocrity in management. These companies must rise up.”
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).
The Ministry of Public Enterprises is set to introduce a league table that will monitor and evaluate the performance of state-owned enterprises (SOEs) across the country.
This initiative is designed to address the recurring issue of financial losses faced by many SOEs over the years.
Speaking at a media briefing in Accra, the Minister of Public Enterprises, Joseph Cudjoe, announced that the league table will enhance competition among these enterprises and spotlight those that are falling behind.
“As soon as you put people in competition to do anything, you get the best out of them. So this innovation I brought about, called the public enterprises league table, puts the enterprises together and ranks them based on governance, management, profitability, and the use of technology and digitalization. The league table will assess these aspects as part of the performance evaluation criteria,” he explained.
Mr Cudjoe further emphasized that the table will reveal which SOEs have shown improvement and which ones are lagging, allowing for targeted strategies to boost their performance.
He revealed that the first publication of this assessment is expected in September.
The minister also urged Ghanaians to be more engaged in the oversight of SOEs, stressing that the performance of these entities directly affects the growth of taxpayers’ investments.
“I am leaving a message to the general public. You and I, our taxes should be managed well. Our taxes get invested in state enterprises. If it reports profits, your taxes invested are growing. If they report losses, it’s not a pleasant outcome. So you should be interested in the companies that are not signing performance contracts and be asking questions. Why are you not signing a performance contract?” Cudjoe stated.
He urged the public to expand their focus beyond well-known entities like the ECG, Cocobod, and PBC, to the full range of 175 SOEs, encouraging more scrutiny and accountability across all sectors.
President Nana Addo Dankwa Akufo-Addo has mandated all state-owned enterprises (SOEs) to furnish their audited financial statements for the year 2023 by May 2024.
Failure to comply with this directive will result in sanctions for the non-compliant entities.
This directive was issued during the 2024 annual policy and governance forum of state-owned enterprises, highlighting the president’s unwavering commitment to ensuring compliance.
The forum serves as a platform to assess the performance of all SOEs in the previous year, aligning with the government’s objectives.
During the launch of a policy on corporate governance, President Akufo-Addo urged SOEs to submit their audited accounts by May 15th of the current year, emphasizing the repercussions of failing to meet this deadline on financing arrangements with the World Bank.
The Public Finance Management Act mandates the submission of audited financial statements by the end of April each year.
The president’s directive aims to address compliance delays and bolster the overall performance of state-owned enterprises.
“Failure to achieve this target will affect adversely the terms of our financing arrangements with the World Bank. The preparation and publication of SOEs have always suffered delays due to a litany of constraints.
Key among them is non-compliance for public entities to the submission of financial statements. In 2020, SOEs were published in March 2022.”
“The 2021 SOE was published in January 2024, this year. The 2022 SOE is now at the final stage of completion. We should not tolerate these delays any further. All board chairs, entities and management teams are hereby instructed to comply fully with the submission requirements from SIGA.
The Public Finance Management Act mandates the submission of audited financial statements of specified entities by the end of April each year.”
John Boadu, the Acting Director-General of the State Interests and Governance Authority (SIGA), is optimistic about the positive impact of the new policy on corporate governance and reducing reliance on government.
He affirmed that SIGA will meticulously oversee SOEs’ compliance with the president’s directive and will enforce appropriate measures against those who do not meet the deadline.
The Director-General of the State Interest and Governance Authority (SIGA), John Boadu, has recently addressed the issue of State Owned Enterprises (SOEs) in Ghana that incur losses, explaining that not all SOEs are run as businesses.
Some are primarily focused on providing essential services to the citizens of Ghana.
Mr Boadu emphasized that SIGA’s role is to ensure these entities adhere to regulations, meet their targets, and consider the social context in which they operate.
“As we speak, it’s 175 (companies). That’s the number of enterprises we have. Let me give you the details of the breakdown. SOEs were 53, JVCs (Joint Venture Companies) were 47, and other specified entities were 75.”
“Even with the 175 that we’ve had, if you check those that have signed performance contracts, you realise that there’s much improvement, but we need to do a lot more. One thing you must notice is that most of these organisations are not necessarily set up to make profit. Some of them are for the provision of social good for the citizens of this country,” Mr Boadu said.
To enhance transparency and accountability, SIGA is working to ensure that all SOEs participate in the State Ownership Report (SOR) initiative. This initiative requires SOEs to provide detailed financial assessments, highlighting achievements, challenges, and areas for improvement.
John Boadu highlighted that a significant challenge in improving certain State Owned Enterprises (SOEs) is the shift in their original objectives and market conditions.
Despite this challenge, SIGA has successfully transformed some of these institutions into more business-oriented entities.
“Let’s take VRA for instance. They are into helping in the distribution of electricity. They will be into transport, real estate, provision of health, provision of education and all that. It was good at that time, because at that time, we had then established with people’s resources from the places that they give it out for free. So, that service is there, and all those services add to the losses they are making.”
“So now what they’ve been able to do is that, they’ve started hiving off some of these important institutions and running them as business. So for instance, if you go to VRA now, their hospitals run as a business, although there’s a social component part of it, to reduce their losses.”
Mr Boadu also cited the Ghana Consolidated Diamond Company as an example, noting that the institution has extensive unused land and operates a hospital that provides free healthcare services to residents of Akwatia.
But “now it’s [The hospital] just running on its own as a business entity and not making losses anymore. They have a school that they are running now as a business entity and they are doing so well. We have empowered them to, so we have a new status and board specifically for them, for them to run as an entity,” Mr Boadu added.
The Director-General of SIGA believes that these institutions, among others, have significant profit potential for the country. Consequently, SIGA is working diligently to ensure they are managed effectively.
In 2022, state-owned enterprises (SOEs) significantly contributed to Ghana’s Gross Domestic Product (GDP), accounting for GHȼ58.2 billion, which amounts to 10 percent.
This marks a notable increase from their contributions of 3 percent in 2020 and 6 percent in 2021, which equated to GHȼ10.33 billion and GHȼ29.11 billion, respectively, according to Dr. Mac-Effort Adadey, the Director of National Accounts at the Controller and Accountant-General’s Department (CAGD).
Furthermore, the total assets of SOEs, as recorded in the consolidated National Account, also saw a substantial rise. It increased from GH¢51.8 billion in 2020 to GH¢419.2 billion in 2022. Dr. Adadey commended the steady progress in this regard.
Dr. Adadey shared this information at the second Editors’ Forum organized by the State Interests and Governance Authority (SIGA) in Accra.
The forum aimed to facilitate discussions on positioning state enterprises to become positive contributors to the economy and to enhance communication between SIGA and the media.
He also revealed that there is an ongoing effort to incorporate all government legacy fixed assets into the government’s balance sheet.
This move is considered a crucial requirement in the landscape of public financial management and will help rectify imbalances.
“We have set out to bring all government legacy fixed assets back onto government’s balance sheet, because over the years we have been raising money – including debt contracting – to acquire these public assets; but because of the cash-accounting basis of preparing the national accounts, these assets are written-off and not reported on the balance sheet. The effect is that when you look at Ghana’s balance sheet, we have the public debt on it – but the assets which have been acquired with this public debt are not on the public sheet. So, you see a huge negative on the balance sheet,” he said.
The Director went on to say that because the current balance sheet does not accurately depict the state of the assets, all public entities will be required to use a standardized fixed asset register.
This register will account for the assets that are actually being used, enabling the CAGD account directorate to include them in the national account.
“By identifying and collecting data on government assets across public entities – by this I mean ministries, departments and agencies (MDAs) across the country – once we get these assets and have their values on the balance sheet, it will correct the imbalances by showing the true picture of Ghana’s value on the balance sheet.
“For the 2022 annual account, we have been able to bring several assets onto government’s balance sheet; and the expectation is that by end of 2023 we will do more, so the balance sheet will look better than it does now,” he added.
He explained that a good balance sheet will give the country a strong financial standing and allow it to relate to the external world.
“If you want to do business with other people, they will look at your balance sheet and be convinced that your net worth is okay. As a country, a good balance sheet also gives us the opportunity to relate with the external world, contract loans at a cheaper rate, and benefit from other good things a good balance sheet can offer any business or country,” he indicated.
According to him, 19 SOEs joined the national account in 2020; that number rose to 48 in 2021, and it reached 62 in 2022.
“We are targetting 87 SOEs for 2023: the expectation is that in the 2023 annual account, we will have all of them responding and the picture will look better,” he added – encouraging all stakeholders, especially the state enterprises, to comply with the Public Finance Management Acts and Regulations to spur growth.
Director-General of SIGA, Edward Boateng, conveyed his organization’s and its partners’ commitment to facilitating the growth of state-owned enterprises (SOEs) to ensure their profitability and their role as a cornerstone of the economy.
He encouraged SOEs to draw from the insights gained during their recent study tour to China, organized by SIGA. This tour provided them with direct access to their Chinese counterparts in the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), which oversees 98 centrally controlled SOEs. China has effectively developed its state enterprises to make a significant contribution to its economy. Mr. Boateng expressed confidence that, with the necessary support and adherence to compliance, SOEs can substantially enhance their financial prospects.
SASAC in China has established a reputation for operational excellence and strict adherence to statutory regulations and internal controls. Chinese SOEs maintain a well-structured human resources workforce, with high retention rates, competitive remuneration packages, and a strong focus on good governance and achieving high production targets. They are renowned for their unwavering commitment to operational excellence and growth, demonstrating zero tolerance for poor performance.
The Chartered Institute of Marketing Ghana (CIMG) is advocating for the appointment of marketing professionals to take the lead in revitalizing underperforming state-owned enterprises (SOEs).
As part of this initiative, the CIMG has initiated discussions with the Public Services Commission to explore the feasibility of incorporating marketing expertise at the highest levels within all Public Sector Organizations.
This move aims to prioritize the interests of customers and improve overall performance.
During the 34th CIMG National Awards ceremony held in Accra, Dr. Daniel Kasser-Tee, President of the CIMG, emphasized that historical evidence demonstrates the significant positive impact marketers have had on numerous SOEs.
Consequently, he stressed the importance of granting more marketing professionals the opportunity to oversee and manage these state-owned enterprises.
“Ghana has, over the years been grappling with poor performing state-owned institutions. We can count very few such institutions that have behaved differently and stood out very tall among their peers. I have previously advocated for the appointment of Marketers, or at least people who understand the essence of marketing, at the helm of poorly performing organisations. History points us to the good work of the good old Professor Stephen Adei and how he turned GIMPA around.”
“We have had the cause to talk about the good work being done at the University of Professional Studies, Accra, where two different Vice-Chancellors, Prof. Joshua Alabi and our guest of honour for this evening, Prof. Abednego Feehi Okoe Amartey, have both won the prestigious Marketing Man of the Year at different times. This is uncommon for public institutions and it is not through sheer luck but can easily be traced to the individual transformational agenda of these three men, backed by their marketing mindset”, he explained.
Dr. Kasser-tee commended the Board and Management of the Bulk Oil Storage and Transportation Company (BOST) for the good work done, adding, “We have taken the trouble to appreciate them as an incentive for other public sector organisation to emulate their good work”.
Unfortunately, the Chartered Institute of Marketing Ghana (CIMG) did not acknowledge any winners in several categories, including Finance House, Telecommunications (Allied & Support Services), Airline of The Year (International), E-Commerce, and Internet Service Provider. This decision was based on the determination that the entries submitted by participants in these industries did not meet the minimum standard criteria for evaluation.
Nevertheless, the CIMG did recognize outstanding performers from the second wave of the Ghana Customer Satisfaction Index (GH-CSI, 2022), which was primarily focused on the banking industry. The awards ceremony will honor top achievers in both Consumer and Business Banking tonight.
Dr. Kasser-Tee commended all individuals and businesses who have supported CIMG throughout the year, especially its sponsors, adding “your support and participation in the processes are mainly responsible for bringing us to this point where we are ready tonight to recognise deserving winners. I therefore seize this opportune moment to congratulate all winners as well as the good people gathered here and those following us online for agreeing to patronise this year’s event.”
Minister for Energy, Dr Matthew Opoku Prempeh, has called on the heads of State-owned Enterprises (SoEs) to emulate the work of the administration of the Bulk Oil Storage and Transportation (BOST) which has turned its fortunes around.
In 2021, BOST made a profit of GHS161 million. A year later, the company has increased its profit to GHS342 million, representing a growth of 112%.
This information was revealed by Board Chair of BOST, Ekow Hackman, during the company’s 2nd Annual General Meeting (AGM) on Thursday, August 17, 2023.
In response, Dr Matthew Opoku Prempeh noted that he is impressed by the company’s progress. According to him, this is the path SoEs must take in order to ensure the government moves from the era of huge debts.
“On behalf of the government and the people of Ghana I would like to express my sincere appreciation to the Board of Directors, Management and staff of BOST.
The progress made by BOST exemplifies the path we should continue to follow. It is my expectation that other State-Owned Enterprises (SOES) will learn from the BOST story and replicate this performance,” he said.
According to the Energy Minister, this would enable that government to effectively execute its
flagship programs using revenues generated by its SOES.
“The remarkable performance of BOST reinforces my firm belief that State-Owned Enterprises can
generate profits, pay dividends and make significant contributions to the government’s fiscal policies with the right leadership, attitude and balance.
The BOST model should serve as an exemplary example for all SOES. I have full confidence that the Public Enterprises Ministry and SIGA will spare no effort in encouraging and leading other SOEs to fulfil their mandates and visions,” he added.
Meanwhile, Dr Matthew Opoku Prempeh has entreated the management of BOST to continue its good work to sustain the growth of the company.
“We encourage you to increase the momentum to sustain this performance and strive for even greater heights. BOST’s success contributes to the fiscal policies of the government and supports our national growth and development agenda,” he said.
Joseph Cudjoe, the minister of public enterprises, has listed a few of the state-owned companies whose assets the government is selling. The government plans to sell the assets of approximately 17 shut-down SOEs, the minister announced last week.
However, he clarified that the action is intended to secure private investments for the enterprises and have a cascading effect on the communities in which they are located.
The Minister said in an interview as quoted by citinewsroom.com that the move is “…to make sure we secure our private investments into it through government decision to sell them off into private hand so that they will be invested into to develop them to bring jobs to that area.”
Ten of the SOEs are:
Ghana National Trading Corporation State Construction Corporation
State Fishing Corporation,
UAC Aboso Glass Factory Bungalow of the Bolgatanga Meat Factory
Bonsa Tyre Factory’s Clinic
Research laboratory of the Ghana Consolidated Diamonds
The regional office of the Ghana Food Production Corporation at Srodae
The decision to sell off the assets of these SOEs according to the Minister is a means for the government to save costs.
According to a Government-commissioned study completed in 2019, the total market value of the State’s equity holding in 63 active Specified Entities was estimated to be GHS 35.7 billion as of December 2016, as disclosed by the Minister.
Out of this amount, State-Owned Enterprises (SOEs) constituted 92 percent of the total value, while the remaining eight percent represented the State’s equity in Joint Venture Companies (JVCs).
To enhance the management and performance of the SOEs, the government expressed its intentions to restructure some of them. The proposed restructuring methods included listing them on the Ghana Stock Exchange, liquidation, strategic investment, and outright disposal.
In a bid to ensure better efficiency and effectiveness in managing the SOEs, the Minister further revealed that in 2021, the government introduced a Public Enterprises League Table (PELT). This tool was designed to assess the performance of the Specified Entities and foster healthy competition among them, thereby driving improved performance.
The Head of Communications at the Ministry of Public Enterprises, Paa Kwesi Agyefi, has stated that not all 17 defunct State-Owned Enterprises (SOEs) will be sold outright.
He explained that the Government intends to retain shares in some of the affected companies instead.
In an interview with the media, Mr. Agyefi stated that the options are still under consideration by the Cabinet.
While some of the enterprises will be sold outrightly, others may have the Government maintain equity in them. He emphasized that the Government is not planning to sell everything to private businesses.
The Minister for Public Enterprises, Mr. Joseph Cudjoe, had previously expressed the Ministry’s determination to divest 17 non-operational State-Owned Enterprises.
Among the affected assets are the Central Stores of the Aboso Glass Factory, the Bolgatanga Meat Factory’s bungalow, the Clinic of the Bonsa Tyre Factory, the Research Laboratory of the Ghana Consolidated Diamonds, the regional office of the Ghana Food Production Corporation at Srodae, and the guesthouse of the State Construction Company at Dagomba Street in the Northern Region.
The decision to divest these assets comes as a response to the need to cut costs, given that the facilities have been non-operational for an extended period and have deteriorated.
Additionally, the Government has been incurring significant expenses to maintain these facilities, while some individuals, possibly workers, have been misappropriating them.
As such, each case will be carefully assessed to determine whether the Government will retain shares or opt for outright sale.
The decision by government to delist over 17 State Owned Enterprises (SOEs) is long overdue, according to financial expert and Financial Advisory Partner Yaw Appiah-Lartey of Deloitte Africa.
On Wednesday, Joseph Cudjoe, the minister of public enterprises, revealed that the cabinet would soon make a decision regarding the future of about 17 state-owned businesses.
The Minister claims that because the government is only incurring expenses by maintaining these State-Owned Enterprises as operational, they are currently liabilities to the nation.
Speaking on the development on Starr Today with Joshua Kodjo Mensah Thursday, the financial analyst stated that although the decision is welcome it is long overdue.
“I think this is long overdue, if you take accounts of the companies that the minister mentioned a lot of them have been underperforming, reporting losses and obviously a drain on government coffers. The idea to restructure is therefore welcoming news and therefore long overdue.
“All these companies that in the past have been listed under state interest and governance authority some of them have been reporting losses for a long time; over the last 5 years. There is nowhere in the world that a private entity operating for the past 5 years reporting losses will continue to be in existence”, he bemoaned
Mr. Yaw-Appiah added that a lot of such non-performing entities remained due to political expediency.
“It is partly because of how some of them have been politically sensitive over the years… Once the government has the political will and has the basis for restructuring these entities by liquidating some, privatizing and bringing in strategic investors and also listing some on the stock exchange, it is a good idea”, he added.
In order to save expenses, 17 dormant State-Owned Enterprises (SOEs) will have their assets sold, according to Joseph Cudjoe, Minister for Public Enterprises.
He said that the operations for disposal will start in the coming months after the Cabinet authorized the procedures for evaluating the assets of the concerned SOEs.
The Central Stores of the Aboso Glass Factory, the bungalow of the Bolgatanga Meat Factory, the clinic at the Bonsa Tyre Factory, the research facility at Ghana Consolidated Diamonds, the regional office of the Ghana Food Production Corporation at Srodae, and the guesthouse of the State Construction Company on Dagomba Street in the Northern Region are just a few of the SOEs whose assets will be put up for auction.
At the Minister’s News Briefing held by the Ministry of Information in Accra on Wednesday, Mr. Cudjoe made this announcement.
The Minister had the chance to inform the public about the different policies and interventions his Ministry had been working on during the media interview.
Since taking office in 2021, Mr. Cudjoe claimed to have visited 44 Boards and Managements of various Specified Entities, communicated with them, and assisted them in finding solutions to some pressing problems affecting their day-to-day operations.
He claimed that the Ministry had set up workshops for some SOE Board and Management members to develop their competence in the areas of corporate governance, financial stewardship, legal and regulatory framework, and public procurements.
The market worth of the State’s equity holdings in 63 active Specified Entities as of December 2016 was estimated by a research the Government conducted and finished in 2019 to be GHS 35.7 billion, according to the Minister.
92 percent of the total was made up of SOEs, while the remaining eight percent was made up of State stock in Joint Venture Companies (JVCs), he continued.
The Minister revealed the government’s plans to reorganize a number of SOEs through their listing on the Ghana Stock Exchange, liquidation, strategic investment, and outright disposal.
He stated that in 2021 a Public Enterprises League Table (PELT) was launched as a tool for measuring the performances of the Specified Entities and to foster healthy competition among them for enhanced performance as part of measures to promote effective and efficient administration of the SOEs.
The first edition of PELT, which was published in 2022 and greatly sparked public attention, inspired numerous SOEs to strengthen their position on the table in later editions.
Following the fulfillment of a month-long campaign that began in March and ended in April, the Electricity Company of Ghana (ECG) has announced that it will embark on another Nationwide Revenue Mobilisation operation.
The five-day exercise will begin on Monday, May 29 and end on Friday, June 2.
In a statement issued on Tuesday, May 23, the company indicated that “this massive revenue mobilisation exercise will focus on all categories of customers in arrears including State-Owned Enterprises (SOEs), and will be monitored by special teams who will apprehend and prosecute customers who attempt to interfere with the exercise, and/or undertake illegal self-reconnection after disconnection.”
The Company said pursuant to this, “ECG shall operate with a lean staff pool who will provide essential services to customers during the revenue mobilisation period to enable total participation by top management and staff.”
Meanwhile, the company says it has recovered some Gh¢3.1 billion out of the total Gh¢5.7 billion debt owned by customers in its previous revenue mobilisation drive.
Speaking at a media briefing, the Managing Director of the Company, Samuel Mahama said although the company has achieved significant feat, there was a lot more to be done.
“Out of the Gh¢5.7 billion ECG manage to recoup GH¢ 3.1 billion,” he said on Thursday, May 4, 2023.
Mr Mahama said despite the attempt made to recover the remaining amount, some companies were untraceable and others had collapsed.
“There were a number of companies that have collapsed that we cannot find in terms of some taking the meters and some of them not having their physical location present.
“Their total bills put together is about Gh¢750 million and the last group is people who are post-paid customers. We probably want to give them the benefit of the doubt but some of them it was true.
“There were demolishing exercises, some of them flooding so those places are no longer in existence and some of them too we just can’t find them. Their bills come up to about Gh¢750 million,” he added.
The Managing Director warned customers using power illegally to rectify or face prosecution for power theft.
The Northern Electricity Distribution Company Ltd (NEDCo) has announced that on Tuesday, 18th April, it will embark on a nationwide revenue mobilisation exercise to retrieve monies owed it.
The exercise which will start on 18 April 2023 will cover all customers in arrears, including State-Owned Enterprises (SOEs), Ministries, Departments and Agencies (MDAs), Metropolitan, Municipal and District Assemblies (MMDAs).
According to a statement issued by management, special security arrangements will be put in place to arrest and prosecute anyone who interferes with the exercise.
It added that persons identified to have engaged in illegal connections or reconnections will equally be dealt with in accordance with the law.
The statement also noted that recalcitrant customers who have refused to redeem their indebtedness to the Company after they have been served with demand notices will be arraigned before Court.
They, therefore, urged customers in arrears to pay their bills immediately to avoid disconnection and payment of reconnection fees.
The statement said the NEDCo’s Head Office and Area Offices will be closed temporarily to allow for the full engagement of all staff, including top management in this exercise but said their customer service centres, zonal offices and third-party vendors will remain open to attend to customers including reconnections.
Last Tuesday, the Electricity Company of Ghana paid a visit to the Ministry of Energy, cutting off electricity to the entire building for over half a day.
Power was only restored after the mother ministry of the Electricity Company of Ghana (ECG) paid their outstanding payment in full.
This will be the fate of many other Ministries, Departments and Agencies (MDAs) and State Owned Enterprises (SOEs) who owe ECG huge amounts of money, forcing the power retailer to embark on a massive revenue mobilization exercise beginning on Monday, March 20, 2023, to Thursday, April 20, 2023.
The exercise is using almost all ECG staff from top management to junior officers to retrieve all the monies owed them.
According to the Managing Director, Mr Samuel Dubik Mahama Esq, the company is owed over GHS 5 billion from the month of September 2022 to February 2023.
Most of this debt resides with the SOEs and MDAs.
The strategy, therefore, is to take these agencies by storm, from March 20, 2023, and those who refuse to settle their bill immediately will be meted the same punishment as the Ministry of Energy.
Ahead of this exercise, Mr Dubik Mahama toured all the operational regions of ECG to sensitize the staff on how to go about the mobilization of the revenue, to respect the customer at all times.
He also reminded the staff that ECG is a business and not a charity and everyone must start to behave as such.
It is expected that at the end of the exercise, 100% of the debt would be recovered.
Government through the Finance Minister, Ken Ofori-Atta has announced some 13 measures to rationalise public expenditure.
According to him, these measures are Cabinet directives that are expected to take effect from January 2023.
This comes on the back of several calls by some sections of the public for the government to cut down its expenditure to salvage the economy.
Currently, Ghana’s economy is under pressure, resulting in higher living costs and galloping inflation.
Presenting the 2023 Budget in Parliament on Thursday, Mr Ofori-Atta stated that the measures are “a first step towards expenditure rationalisation.”
The 13 measures are listed below:
2. A ban on the use of V8s/V6s or its equivalent except for cross-country travel. All government vehicles would be registered with GV green number plates from January 2023;
3. Limited budgetary allocation for the purchase of vehicles. For the avoidance of doubt, purchase of new vehicles shall be restricted to locally assembled vehicles;
4. Only essential official foreign travel across government including SOEs shall be allowed. No official foreign travel shall be allowed for board members. Accordingly, all government institutions should submit a travel plan for the year 2023 by mid-December of all expected travels to the Chief of Staff;
5. As far as possible, meetings and workshops should be done within the official environment or government facilities;
6. Government-sponsored external training and Staff Development activities at the Office of the President, Ministries and SOEs must be put on hold for the 2023 financial year;
7. Reduction of expenditure on appointments including salary freezes together with suspension of certain allowances like housing, utilities and clothing, etc.;
8. A freeze on new tax waivers for foreign companies and review of tax exemptions for free zone, mining, oil and gas companies;
9. A hiring freeze for civil and public servants
10. No new government agencies shall be established in 2023;
11. There shall be no hampers for 2022;
12. There shall be no printing of diaries, notepads, calendars and other promotional merchandise by MDAs, MMDAs and SOEs for 2024;
13. All non-critical projects must be suspended for 2023 Financial year.