SIGA helping loss-making State-Owned Enterprises to break even - Kpessa Whyte
The Director General of the State Interests and Governance Authority (SIGA), Professor Michael Kpessa-Whyte, has indicated loss-making State-Owned Enterprises (SOEs) are making significant strides toward financial stability, with many now preparing to break even.
Speaking in a television interview on TV3 on Sunday [April 6, 2025] Prof. Kpessa-Whyte explained the unique mandate of SIGA, stressing that it plays a crucial operational and governance oversight role that complements, rather than duplicates, the work of sector ministries and the Auditor-General’s office.
“SIGA’s mandate is broader. While the Auditor-General appoints auditors to look into the books and present reports to the government, SIGA ensures operational oversight and promotes best practices in corporate governance.”
He explained that SIGA works with SOEs across a three-year value chain, helping them set and meet performance targets. “We are currently in 2025, but already working with these entities on their 2026 performance contracts,” he noted.
Although SIGA is a relatively young institution, established just five years ago, Prof. Kpessa-Whyte said it is “a toddler with an adult’s vision” and has already begun to yield positive results. “Since 2019, there has been a steady reduction in losses, and many entities are positioning themselves to break even and eventually pay dividends,” he revealed.
Changing institutional culture
He noted that many SOEs had entrenched inefficient operational habits and cultures developed over decades. SIGA’s role includes scrutinising these entities “under a microscope” to identify behaviours that increase costs and reduce efficiency. “Within five years, we’re already seeing a shift. Given the necessary support and resources, SIGA can help these entities transition into profitable ventures,” he added.
Prof. Kpessa-Whyte stressed the wider economic implications of strengthening SOEs. “If you manage them well, your dependency on foreign donors and development partners reduces. You generate more income internally, expand the economy, and create jobs,” he said.
Addressing concerns over delayed publication of SIGA’s 2024 State Ownership Report, the Director General explained that SIGA is still awaiting audited financial statements from SOEs — a requirement under Ghana’s Public Financial Management Act.
“2024 has just ended, and by the end of April, all state entities are required to submit their audited financial statements to SIGA,” he said. “Once received, we will conduct clinical analysis to produce the SOR-24. We are already working on it.”
He disclosed that SIGA recently met with over 140 of the 175 state entities to reinforce the importance of timely submissions. “We took them through the deadlines, sanctions for non-compliance, and the President’s directive to submit a report by May 15 on which entities have complied,” he said.
Prof. Kpessa-Whyte noted that some SOEs cited the absence of functioning boards as a challenge. “We’ve told them: if you’re spending public funds, then submit your reports. You can accompany them with memos stating the board status,” he added.
Beyond financial audits
He further explained that SIGA’s assessments go beyond financial audits. “We’re also working on a Governance and Institutional Assessment Report, which evaluates non-financial elements to provide a holistic view of performance,” he said.
Responding to concerns about state interests in joint ventures and minority shareholding arrangements, Prof. Kpessa-Whyte reaffirmed his belief in the current crop of SOE leaders. “I have full confidence in the CEOs. These deadlines weren’t set by SIGA — they are legal requirements. And the President himself met with SOE leaders to stress their importance,” he concluded.
SIGA was established under the SIGA Act, 2019 (Act 990), to ensure the efficient management of Ghana’s state-owned entities and the safeguarding of public interest in commercial ventures where the state has a stake.
