The State Interest and Governance Authority (SIGA) has instituted a weekly media engagement aimed at sharing the successes of state enterprises with various stakeholders and the citizenry in general.

SIGA has a core mandate to promote within the framework of government policy, the efficient and profitable operations of statutory corporations engaged in trade and industry.

At the maiden edition in Accra on June 2, 2021, The Director-General (DG) of SIGA, Mr Stephen Asamoah-Boateng, explained that the series was instituted to update the public on the operations of the state-owned enterprises (SOEs) and to kick-start a relationship of working together.

Consequently, the new initiative will invite chief executive officers (CEOs) and director generals weekly to re-emphasise the work they have been doing, pitch their successes and do follow ups for feedback to correct what needs to be corrected.

“In the midst of Covid-19, we have success stories around and we are doing far better and that is the success story we want to send out,” he said.

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SOEs

The Ghana Gas Company Limited (Ghana Gas), and the Bulk Oil Storage and Transportation Company Limited (BOST) were the first two SOEs that participated in the maiden edition of the media engagement.  

The CEO of Ghana Gas, Dr Ben Asante, outlined plans to expand infrastructure to support the country’s gas production.

These include another gas processing plant to increase capacity from the current 150 to about 240, 278km onshore pipeline from Takoradi to Tema to use onshore pipeline to transport natural gas eastwards, Prestea-Kumasi gas pipeline project to supply lean gas to Nyinahin and Kumasi for mineral processing and power generation (60 per cent complete) and Mainline Compressor Station at Atuabo to maximise pipeline capacity from 135 to 405 (million standard cubic feet per day (MMscfd).

The rest are a 52-kilometre pipeline from Atuabo to Côte d'Ivoire to transport natural gas to the Osagyefo Barge and Domunli Enclave and Cote d’Ivoire (through “Swapping”), as well as gas supply to fertiliser plant project located at Domunli to produce 400,000 tonnes of Urea & NPK fertiliser.

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Indigenisation

Dr Asante said under an indigenisation initiative, Chinese Operators had been replaced with Ghanaian Operators in March 2017 and to save $3.5 million (GH¢20 million) a month in operating cost.

“It took Trinidad 40 years to fully indigenise; Nigeria, 50 years; GhanaGas took less than three years. We built solid intellectual capital with our men and women engineers and technicians.

“Gross profit has improved remarkably from 2016 due to cost optimisation measures and indigenisation, relative stability in flows,” he said.

He added that the restructuring of GhanaGass Balance sheet with the Ministry of Finance conversion of $400 million debt to equity and offset of $233 million Volta River Authority (VRA) indebtedness gave GhanaGas a stronger balance sheet with improve gearing (debt to equity ratio).


BOST

For his part, the Managing Director of BOST, Mr Edwin Provencal, said the key achievements by BOST so far included the payment of about 96 per cent ($573 million) of its legacy debt of $623 million to suppliers and related parties.

“In terms of our GCB Bank loan of GH¢58.4 million through our internally generated fund we have been able to pay all, our UBA loan we have paid it off completely, our StanChart loan we have negotiated from GH¢137million to GH¢100 million and we have cleared as well.

“Our audited accounts for 2015, 2016, 2017 and 2018 audits have been completed, 2019 audit is 90 per cent complete and 2020 audit will be completed by June 2021,” he said.


Improving performance

The Minister of Public Enterprises, Mr Joseph Cudjoe, said SOEs, characterised by underperformance, have become a drain on government’s budget, hence the need to change the narrative around them.

“When it comes to managing SOEs, it is about taking decisions in the interest of the organisation and the country. Board of directors give direction to management team to perform to expectation.

“When we get boards’ interest aligned with the state interest and management teams’ interest aligned with the board interest, then we are sure that we are going to see the kind of good results we expect; that is now the gap SIGA is doing everything in its power and mandate to address,” he said.