Finance Ministry Signals Tough Measures for Underperforming State Enterprises
The Deputy Minister for Finance, Hon. Thomas Nyarko Ampem, has warned State-Owned Enterprises (SOEs), to improve performance or risk dissolution.
Speaking at a meeting with core stakeholders of State-Owned Enterprises and Specified Entities under the theme, “Leveraging Public Assets For Shared Prosperity”, Mr. Ampem explained that the government will no longer tolerate loss-making SOEs under its renewed push for efficiency and accountability in the Public Sector. Adding that the government on its part has stabilized the economy and created favorable conditions and now the onus lies on SOEs to perform.
Making reference to President Mahama’s commitment earlier,The Deputy Minister added that underperforming enterprises will either be reformed, merged, privatised, or shut down.
He noted the micro economic gains made provide a stable foundation for SOEs to transition from being fiscal burdens to contributors to national revenue.
He further emphasized that the government is no longer willing to pour vast sums into state-owned enterprises, only to watch inefficiencies persist ,citing the $1.47 billion spent propping up the energy sector as a case in point, even as the Electricity Company of Ghana continues to hemorrhage 40 percent of its power through operational failures.
Mr. Ampem further emphasized the need for strict adherence to reporting and governance requirements under the State Interests and Governance Authority (SIGA), warning that entities that fail to comply will face sanctions. Boards and management, he added, will be held accountable for failures in oversight and execution.
The Deputy Minister concluded by urging SOEs to operate with discipline, efficiency, and transparency, stressing that public enterprises must deliver value to the Ghanaian people or risk being dissolved.
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