State-owned enterprises (SOEs) and other specified entities (OSEs) have been charged to embrace sound corporate governance for sustainable growth, efficiency and development.
He said: “Corporate governance is not merely a buzzword; it is the cornerstone upon which sustainable growth and development rest, as it is a catalyst for efficiency and innovation”.
Attorney-General Godfred Yeboah Dame also elaborated that efficient and effective state enterprises are crucial for the country’s development, given they are crucial in providing essential services, driving economic growth and generating revenue for the state. However, for them to fulfil this role effectively, they must adhere to the highest standards of corporate governance.
Mr. Dame further added that by promoting sound governance practices, SOEs and OSEs will create an environment that enables them to operate efficiently, reduce wastage and continually strive for improvement.
This, he is confident, will lead to better service delivery, increased productivity and, ultimately, economic prosperity.
“Good corporate governance ensures transparency, accountability and fairness in the management and decision-making processes of these entities. It instils investor and public confidence, attracts investment and safeguards the interests of stakeholders – including the citizens of Ghana.
“I encourage all Specified Entities to view corporate governance not as a mere obligation but a strategic asset. Embrace the principles of accountability, transparency and ethical behaviour. Develop robust governance structures and nurture a culture of integrity within your organizations,” he advised.
He also stressed the need for SOEs and OSEs to operate within the confines of Public Financial Management Regulation 2019 (L.I. 2378), so as to bring clarity to processes and functions outlined in the Public Financial Management Act, 2016 (Act 921).
Improvement
For his part, Minister of Public Enterprises Joseph Cudjoe noted an improvement in compliance by entities working within the regulatory frameworks; such as adherence to the Public Financial Management Act and the signing of performance contracts.
“We have been able to move audited account preparation, which was only six – six out of the numerous enterprises in 2016, to today more than a 100. And not only the number; you know complying with the financial management act itself requires that end of February – that is, the second month of the succeeding year – you prepare the account and give it to the Auditor-General for him to report it,” he indicated.
Mr. Edward Boateng added that: “A notable transformation has occurred in the discourse surrounding State owned Entities, SEs. The discussions are rapidly shifting from concerns about non-performance to accounts of improved performance and efficiency. This shift is not merely anecdotal but substantiated by empirical evidence. The PELT technical team’s analysis reveals a substantial rise in average scores between the 2020 and 2021 Performance Contract evaluations.
“On the 5-point scoring system employed to gauge SE performance, the 64 SEs achieved an overall average performance index score of 2.737 during the 2021 Performance Contract Evaluation. Although this performance is still below average on the 5-point scoring scale, it also represents a marginal improvement of some 6.65% compared to the preceding fiscal year’s average score of 2.566 involving 50 SEs.”