By Jibril Abdul Mumuni
Accra, June 12, GNA- Professor Michael Kpessa-Whyte, Director General of the State Interests and Governance Authority (SIGA), has warned of severe sanctions for any State Entities which fails to adhere to performance contracts.
This decision comes against a backdrop of weak commitment to performance contracts by some state-owned enterprises, joint ventures, and other state entities.
The Director General made these remarks at a high-level meeting on performance contracts with selected specified entities, held in Accra.
The meeting brought together key public officials from various state entities, with a spotlight on the urgent need for compliance with performance contracts and the implications of non-compliance.
This gathering followed a successful meeting with the Chief Executive Officers (CEOs) of SOEs and Joint Ventures, where they were thoroughly briefed on the modalities of performance contracts and the consequences of non-compliance.
Key variables of these performance contracts include efficiency and productivity, management improvement and project implementation, and economic and financial positions.
Professor Kpessa-Whyte noted that sanctions for non-compliance could include dismissal, public naming and shaming of entity heads, and the dissolution of boards.
“We can publish the names of entities that have demonstrated a weak culture towards signing performance contracts or have signed performance contracts but are not enforcing them religiously or are not using them religiously to guide their operations,” he stated.
“SIGA can name and shame some of these entities or organisations, and I think nobody likes naming and shaming because it has reputational damage for them.”
The Director General urged State-Owned Enterprises (SOEs) to adhere to performance contracts to foster proper corporate governance within their respective entities.
He underscored the critical importance of performance contracts, stating that they served as a benchmark for performance, guided the establishment on key performance indicators, and ensured compliance with statutory reporting to SIGA.
Professor Kpessa-Whyte also noted that the meeting with the Chief Executive Officers was timely, given the recent appointment of many CEOs who might not be fully aware of their obligations to SIGA.
He said in the coming weeks, SIGA would organise capacity-building workshops on corporate governance for entities, aiming to help them internalise values and norms and prevent common mistakes associated with running state institutions.
GNA
Edited by Samuel Osei-Frempong