By Ernest Nutsugah
Accra, April 23, GNA – Mr John Boadu, Acting Director General, State Interests and Governance Authority (SIGA), has called for increased financial support for the Authority and State Enterprises as they continue to deliver on their mandates.
He said the necessary funding and human resources would help State Enterprises contribute about 30 percent to the country’s Gross Domestic Product (GDP), “as expected of them”.
Mr Boadu was speaking at the launch of two policy documents; “The Code of Corporate Governance for Specified Entities and Public Service” and “The State Ownership Policy”, which aim to strengthen the operations of State Enterprises.
The documents were developed by SIGA and the Public Services Commission (PSC) with support from the Minister for Public Enterprises, Ministry of Finance (MoF) and partners, including the World Bank.
Mr Boadu, in his address, highlighted strengthened performance contract management, improvement in financial reporting and compliance of State Enterprises, and the development of the two policy documents, as some achievements of SIGA.
He said State Enterprises contributed GHS 58.27 billion to GDP in 2022 while “total assets in National Account” rose from GHS 51.8B in 2020 to GHS 419.2 billion in 2022.
He touched on efforts aimed at enhancing transparency and accountability in State Enterprises and encouraged entities to submit 2023 “Management or Audited Accounts”, in line with the provisions of the Public Financial Management Act (PFMA).
The Acting Director General urged heads of public enterprises to comply with “reporting requirements” from SIGA, as the Authority would enforce “necessary sanctions for noncompliance.”
“This move is not aimed at making the responsibilities of Boards and Management of State Enterprises unbearable, but it is rather a necessary step to uphold the integrity of our oversight mechanisms and ensure accountability, transparency, and ultimately, the optimal performance of State-Owned Enterprises (SOEs),” he stated.
He added that SIGA with World Bank support had initiated “performance evaluation of 16 SEs for efficiency and profitability enhancement” with reports expected to be submitted to Cabinet by November 30, 2024, to offer “strategic recommendations for State Enterprise transformation and economic development”.
In a speech read on his behalf, Dr Mohammed Amin Adam, Minister of Finance, urged State Enterprises to increase performance and contribute positively to the country’s economic transformation agenda.
“….While we do not expect an overnight turn in the fortunes of SOEs, it is important that urgent steps are taken to expedite the turnaround to signify that our cherished SOEs not only excel at both capital and operational efficiency, but also offer a cost-effective proposition whilst delivering value to the State as a share holder via regular payment of dividends,” he stated.
Mr Joseph Cudjoe, Minister for Public Enterprises, said the government was “close to achieving transparency” in Public Enterprises, adding that the new policy documents would provide the necessary framework for the management of State interest in public entities.
GNA