President John Dramani Mahama has expressed worry over the use of State-Owned Enterprises (SOEs) for the accumulation of personal wealth by some appointees.
Speaking to some chief executives of SOEs on Thursday, March 13, in a meeting with the State Interest and Governance Authority (SIGA), the president blamed the poor state of the entities on their leadership.
He cited bloated budgets, unjustified allowances, and unnecessary expenditures as some of the factors draining public funds.
“Many SOEs have been used as mere instruments for personal wealth accumulation by appointees. The chief executives, management, and boards of these enterprises are responsible for this situation.
READ ALSO: SOEs, JVCs Targeted for ‘Urgent’ Reforms
“Some SOEs have become perennial loss-makers, draining public funds with bloated budgets, unjustified allowances, and unnecessary expenditures while relying on government bailouts as if entitled to them. Many of these entities are at their lowest point in the entire history of the Fourth Republic,” he lamented.
President Mahama further warned that loss-making SOEs will no longer be tolerated, adding that such entities would be merged, privatised, or shut down.
“I will assess you based on your performance. If you do not align with the pace of the reset agenda, you may be asked to step aside. If that adds to the horror movie, so be it. The era of impunity, mediocrity, and financial recklessness must end today,” he stressed.
Meanwhile, he said the meeting with the CEOs reaffirms his commitment to shaking up loss-making state enterprises and realigning them to break even and transition into profitability.
This comes after Finance Minister Dr. Cassiel Ato Forson, pointed to the deep financial losses across the SOEs.
He said nearly all of them—from electricity firms to agricultural companies—are in distress, and their continued financial deterioration poses a major risk to Ghana’s fiscal framework.
hbu9p1