A new International Monetary Fund (IMF) Technical Assistance Report has revealed that State-Owned Enterprises (SOEs) recorded approximately GH¢18.6 billion in financial management irregularities.
The IMF report raises concerns over the financial risks their operations pose to government.
The IMF report, titled “Advancing SOE Fiscal Risks Management, Financial Oversight, Governance, and Investment Implementation”, draws on findings contained in the 2024 Report of the Auditor-General.
According to the report, outstanding debtors and loans accounted for the largest portion of the irregularities at GH¢12.54 billion, representing overdue receivables and funds that remain locked up.
Also, cash irregularities amounted to GH¢4.58 billion and included unsupported payments and revenues that were not properly accounted for.
The IMF further warned that persistent financial weaknesses among strategically important SOEs could increase the government’s fiscal exposure, with entities carrying significant liabilities or continuing to record losses.
The IMF consequently called for stronger financial oversight and governance, including better coordination between the Ministry of Finance and the State Interests and Governance Authority and improved monitoring of SOE investments.
The IMF reports come on the heels of President John Dramani Mahama announcing that the government will no longer continue to absorb persistent financial losses incurred by State-Owned Enterprises (SOEs) with the national budget.
Mahama urged boards and management teams to improve efficiency, accountability and profitability.
According to John Mahama, his government has reset its relationship with state-owned enterprises and would demand greater value from institutions entrusted with managing public assets.
Mahama disclosed that the time had come for SOEs to operate with a stronger sense of responsibility.
Speaking at a conference organised by the State Interests and Governance Authority (SIGA) at La Palm Royal Beach Hotel, Mahama stated, “Persistent losses will no longer be quietly absorbed into the national budget”.
“These assets do not belong to any government, a board, or a chief executive. They belong to the people of Ghana, and you and I hold them only in trust for the people,” he said.
Also, President John Dramani Mahama has said a one-year improvement in the performance of Ghana’s state-owned enterprises (SOEs) is commendable but not enough.
According to John Mahama, sustaining the one-year gains will be the real test of the government’s reforms.
Mahama argued that the he 2025 State Interests and Governance Authority (SIGA) report is encouraging but must be backed by stronger core operations.
President Mahama stated, “A one year turnaround is encouraging, but sustained performance is the real test”.
“These results deserve commendation,” he said, while cautioning that the gains could not depend indefinitely on a favourable business environment or movements in the exchange rate.
“They must, however, be sustained through stronger core operations and cannot depend indefinitely on just a better business environment and the exchange rate movements,” he said.
“Progress by a number of entities cannot mask the persistent weaknesses across the general portfolio,” he said.
Mahama added, “Ownership must produce public value. Every institution represented here must demonstrate with credible evidence the value that it has created for the Ghanaian people”.
“I said that persistent losses could no longer be quietly absorbed into the national budget,” President Mahama said, adding that leadership positions in state enterprises should be linked to performance.
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@ghnow_ A parent has expressed frustration after their son, who had Grade 9, was reportedly placed in his third-choice school. #GHnow #fyp ♬ original sound – GHnow
