By Jibril Abdul Mumuni
Accra, March 14, GNA – Dr Cassiel Ato Baah Forson, the Finance Minister, Thursday emphasised the urgent need for state-owned enterprises (SOEs) to adhere to sound corporate governance practices and comply with financial reporting obligations.
He highlighted the critical role of transparency, accountability, and financial discipline in reversing the declining performance of SOEs, which have been plagued by consistent losses in recent years.
The Minister said this at a high-level meeting between the President and Chief Executive Officer of SOEs in Accra.
Dr Forson expressed deep concern over the financial health of several key SOEs, citing alarming losses across sectors.
“Even traditionally profitable entities like the Ghana Ports and Harbours Authority have begun to struggle, with losses recorded in 2024,
The Minister attributed those challenges to weak corporate governance, operational inefficiencies, and non-compliance with financial reporting standards.
He stressed that the Public Financial Management Act 2016 (Act 921) mandates SOEs to prepare and submit audited financial statements within strict timelines.
“Specifically, Section 95 of the Act requires SOEs to submit their financial statements to the relevant minister within four months after the end of the financial year. However, many SOEs have failed to meet these obligations, undermining transparency and accountability,” he noted.
To address those issues, Dr Forson outlined a comprehensive turnaround strategy aimed at transforming SOEs into financially sustainable institutions.
He called for effective strategies to strengthen operational efficiency through targeted training and resource allocation.
The finance minister said SOEs must implement robust governance frameworks to ensure compliance with regulatory requirements and improve decision-making processes.
He urged the SOEs to enforce strict financial controls and strategic planning to restore profitability and reduce fiscal risks.
The Minister announced that the Ministry would collaborate closely with the State Interests and Governance Authority (SIGA) to monitor compliance with financial reporting obligations.
Dr. Forson reaffirmed his commitment to restoring transparency and accountability in Ghana’s SOEs.
“Our vision is to create state-owned enterprises that operate with integrity, contribute to the economy, and serve the people of Ghana. This requires a collective effort to uphold the principles of good corporate governance and financial discipline.”
GNA