The President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo, has instructed the Director General of the State Interest and Governance Authority (SIGA) to collaborate with the Auditor General’s department to drill down on the causes of the recurring infractions of State Owned Enterprises (SoEs) and specified entities.
They are also to identify those responsible for causing the recurring infractions and to make recommendations on how to deal with the challenge.
The President disclosed this when he addressed chairpersons of specified entities in the country at the banquet hall of the Jubilee House today 3 October 2022, at a meeting called at his instance.
“I am directing the Director General of SIGA to work with the Auditor General to drill down the causes of the infractions, identify persons responsible and make the necessary recommendations as prescribed by law. I have given them four months to submit a report to the Chief of Staff” President Akufo-Addo said.
Auditor General report
In his statement, President Akufo-Addo said he believes all the chairpersons “have read the 2021 Auditor General’s report and have seen the numerous infractions stated on the part of specified entities”.
The report according to the President “clearly shows an increase in infractions which demands answers from all” [State Entities].
“Let us remember, that specified entities have been set up to provide efficient public services, promote public economic activities and contribute to our GDP, reduce our imports, increase our exports and thereby strengthen our economy while creating jobs for our people”.
“However, the current trend of affairs neither portray that picture nor reflects positively on the managers of our specified entities, oversight institutions and government itself” President Akufo-Addo said.
“There is a clear indication of poor supervision and management as well as poor enforcement of implementation and sanctions of the needed measures”.
I appointed you as leaders of these specified entities with the strong believe that you will ensure a positive change in the narrative of loss making entities and build value for the people of Ghana. That has not happened, so I expect more from you” the President added.
Marked improvement
As part of the meeting with the chairpersons, President Akufo-Addo, indicated that he seeks to “know from [the chairpersons], what they believe are the causes and for us to agree on solutions to address these infractions pointed out by the Auditor General and the 2020 state ownership report”.
“I want to see a marked improvement in these reports next year. Things have to change. We are not in normal times and people are eager to blame somebody.
Let us not make it easy for people to blame us. We can defend and be excused for what is humanly beyond our control, but for those that fall under our purview of responsibility and capacity, let us do our best” President Akufo-Addo told the chairpersons.
Boards supervisory role
Touching on the supervisory role of board members of State Owned Enterprises, President Akufo-Addo said he will continue to advocate for good corporate governance practices in specified entities, where boards effectively oversee and direct the management of state owned institutions.
“Boards must desist from interfering in the day to day management of their respective entities and making unwarranted demands on the management.
“I entreat you to take seriously the honour bestowed on you to serve your country, contribute to its socio-economic development and ensure improved performance of your specified entities” Akufo-Addo noted.
Improving SoE performance
The Director General of SIGA, Edward Boateng, in his address, lamented the poor performance of specified entities in terms of their overall contribution to the country’s GDP.
He added that as part of efforts by SIGA to improve the performance of specified entities, they are developing a code of corporate governance to support boards and management of SoEs in the discharge of their duties.
“Specified entities together controls 5% of our national assets and a such, we must lift our game. Contributing less than 5% of GDP of the country is not acceptable” Edward Boateng said.
SIGA
SIGA is the acronym of a body corporate established with the passage of the State Interests & Governance Authority Act 2019 (Act 990) in June 2019; with the mandate to oversee and administer the state’s interests in state-owned enterprises, joint venture companies and other state entities and to provide for related matters.
With the presidential assent of SIGA given on 7th June, 2019, the laws which established both the State Enterprises Commission (SEC) and the Divestiture Implementation Committee (DIC) are repealed; with their assets and liabilities transferred to the new entity.
Rationale behind SIGA
SIGA is designed to provide a far better ownership and governance framework for SOEs, JVCs, OSEs than previously existed.
This is to increase shareholder value and better returns on investment; provide better coordination among state entities (commercial and non-commercial) and other stakeholders, enhance the capacity of heads and employees to deliver on their core mandate in the changing environment and to give customer and consumer satisfaction.
