The Ministry of Public Enterprises has announced the government’s intention to sell the assets of 17 inactive State-Owned Enterprises (SOEs).
Some of the SOEs to be affected are the Aboso Glass Factory, Bolgatanga Meat Factory, Bonsa Tyre Factory’s Clinic, Ghana Consolidated Diamonds, Ghana Food Production Corporation at Srodae and State Construction Company.
According to the Minister of Public Enterprises, Joseph Cudjoe, these entities have become liabilities which are causing financial loss to the state.
“From our records, we have 17 defunct entities that the government is taking steps to dispose of. The problem now is that the government is just incurring costs to take care of them while others are just vandalizing assets,” the Minister said while briefing the media on Wednesday, July 12.
Mr Cudjoe explained that the government’s plan is to restructure the SOEs by listing them on the Ghana Stock Exchange, liquidation, strategic investment and outright disposal.
“There are some upon review, we intend to list them on the stock market to get the investing public to have equity stakes in them to help them grow and generate jobs for the good people of Ghana,” he added.
Meanwhile, Finance Minister, Ken Ofori-Atta, has indicated that about 25% of Ghana’s assessed debt burden emanates from non-central government operations, mainly from SOEs such as COCOBOD and those in the energy sector.
According to him, the government’s ability to institute better governance standards for these institutions will address their liabilities and promote their growth.