President John Dramani Mahama has announced 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.
Meanwhile, John Mahama has warned his gvernment will not tolerate conflict of interest, abuse of office among members of his administration and governing boards of State-Owned Enterprises (SOEs).
He stressed that public officials entrusted with managing state institutions and resources must uphold the highest standards of integrity, transparency and accountability.
“Ladies and gentlemen, this administration will not tolerate conflict of interest or abuse of office. Procurement must be lawful and follow the guidelines; it must be competitive and transparent.
“Recruitment and promotions must be based on merit, and contracts, investments and asset disposal must withstand scrutiny and demonstrate value for money.
“Boards must take personal responsibility for land, buildings, equipment and investments in their custody. Unauthorised disposal, encroachment or dissipation of state assets is not a minor administrative lapse. It is a breach of trust against the people of Ghana.”
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