President orders audit of SOEs - Exercise to block inefficiencies, deliver value

President John Dramani Mahama has instructed the State Interests and Governance Authority (SIGA) to commission independent audits of state-owned enterprises (SOEs) to identify inefficiencies and financial leakages, emphasising that the government will not sustain entities that fail to deliver value to the nation.  

The directive aims to align SOEs with the country’s economic goals and reduce the financial burden they impose on the state.  

The President issued the directive during a meeting with Chief Executive Officers (CEOs) of SOEs in Accra yesterday, where he expressed deep concern over the recurring losses incurred by unprofitable state enterprises.

The meeting, which assembled heads of various SOEs in the country, also had in attendance the Minister of Finance, Dr Cassiel Ato Forson; the World Bank Country Director, Robert Taliercio; the Chief of Staff, Julius Debrah, and the Director-General of SIGA, Professor Michael Kpessa-Whyte, among others.

It was held on the theme: “Resetting State-Owned Enterprises for Sustainable Growth and Fiscal Stability”.

In addition to the audit directive, President Mahama outlined four other key measures to improve the performance of SOEs. 

These included negotiating and enforcing performance contracts with heads of entities, conducting regular in-depth assessments of SOE finances to ensure transparency and exposing mismanagement, issuing binding directives and implementing compliance mechanisms, and setting and monitoring performance metrics with tangible consequences for non-performance.

No losses

President Mahama further warned that loss-making SOEs would face significant consequences if they failed to improve.

"Loss-making SOEs will no longer be tolerated. They will be swiftly reformed, merged, privatised or shut down," he stated.  

The President underscored the urgent need for SOEs to become more efficient and financially sustainable to prevent further strain on the national economy.

He stressed that strategic reforms were essential to ensure that these institutions contributed effectively to the country’s broader economic objectives.  

SIGA, which oversees the operations of SOEs, has been tasked with implementing these directives to ensure accountability and improved performance across state-owned institutions.  

President Mahama said he was committed to the fight against corruption and financial mismanagement in SOEs, and that he would not hesitate to prosecute officials who indulged in such practices.

“Corruption, procurement fraud and financial mismanagement will be prosecuted strictly, and boards that rubber-stamp poor decisions will be replaced,” President Mahama said.

He added that “the practice also of and in a few cases using entity resources and funds to indemnify board members from accountability must cease immediately”. 

Reforms

For his part, Dr Forson emphasised the need for transparency, accountability,and financial discipline to restore profitability and sustainability in SOEs.  

He highlighted financial losses recorded by major SOEs, including the Electricity Company of Ghana (ECG), which posted a loss of GH¢5.96 billion in 2023, Ghana Cocoa Board (COCOBOD), which recorded a GH¢3.8 billion loss in 2022, and Graphic Communications Group Ltd, which made consecutive losses of GH¢3.04 million in 2021, GH¢4.43 million in 2022, and GH¢15.18 million in 2023.

He said only three SOEs, namely Tema Development Company, Ghana Reinsurance Company and State Housing Company paid dividends in 2024, contributing a modest GH¢28.7 million to the state.  

To reverse this trend, the Finance Minister outlined a turnaround strategy, which included capacity-building initiatives, enhanced corporate governance training, and strict enforcement of financial reporting obligations under the Public Financial Management (PFM) Act, 2016.

He warned that non-compliant entities would face sanctions as prescribed by law.  

Dr Forson urged SOEs to publish their audited financial statements and annual reports on their websites to promote transparency and accountability.

He also called on SOE leaders to support the government’s economic recovery agenda through hard work, fiscal discipline and strategic decision-making.  

Profitability

Prof. Kpessa-Whyte urged heads of SOEs to prioritise good governance, transparency and accountability to drive efficiency and profitability.  

“The foundation of any high-performing enterprise — whether public or private — is sound corporate governance,” he said.

“Weak governance structures lead to inefficiencies, financial mismanagement, and, ultimately, institutional failure. But where there is strong governance, there is resilience, growth and long-term success,” he added.

Prof. Kpessa-Whyte highlighted SIGA’s commitment to fostering a collaborative partnership with SOEs, emphasising that the relationship should be based on mutual respect and shared responsibility.  

“At SIGA, we firmly believe that our relationship with SOEs must be horizontal, not vertical; a partnership based on mutual respect, shared responsibility and a common goal of improving performance,” he stated.  

He called on SOEs to embrace innovation, digital transformation and human capital development to remain competitive and sustainable.

“The time has come to move beyond mere survival to sustained value creation,” he added.  

The Director-General also announced that SIGA would reflect these priorities in the 2026 Performance Contracts with SOEs, expected to be signed in December this year.