Accra, Jan. 28, GNA – The Ministry of Finance says it’ll follow suitable sanctions and consequences to Specified Entities for non-compliance to the Public Finance Control (PFM) and the State Hobby Governance Authority (SIGA) Acts.
The Ministry will additional suggest the removing of Governing Forums that flout the Acts.
The Ministry additional mentioned that it will now not believe requests for presidency make stronger from Specified Entities that failed to satisfy the reporting necessities specified within the PFM Act, PFM Rules and SIGA Act.
Lately, there are 183 Specified Entities in the Govt’s information consisting of 51 State-Owned Enterprises (SOEs), 43 Joint Project Corporations (JVC) and 89 Different State Entities (OSEs).
As of the tip of December 2021, handiest 31 out of 51 SOEs, representing 61 according to cent, 22 out of the 89 OSEs representing 25 according to cent, and 22 out of 43 JVCs, representing 51 according to cent, had submitted audited monetary statements for the yr 2020 to the Finance Ministry.
Dr John Ampontuah Kumah, Deputy Minister of Finance, talking on behalf of Mr Ken Ofori-Atta, Minister of Finance on the 2022 Coverage and Governance Discussion board, mentioned the returns on govt’s investments from Specified Entities weren’t sure as anticipated.
The 2022 Coverage and Governance Discussion board, organised by means of SIGA and different companions, used to be at the theme: “Bettering the Efficiency of Specified Entities: Management and Generation.”
The Discussion board, which introduced in combination Board Participants of Specified Entities, mentioned the operational potency and profitability of Specified Entities, increasing the nationwide accounts to incorporate SOEs and JVCs, amongst different governance problems.
Dr Kumah mentioned the 2020 State Possession Document Research had printed that the efficiency of Specified Entities had in large part trended downwards.
SOEs, he mentioned, persistently posted mixture web losses from the 2015 volumes of GH¢2.1 billion to 2020, which recorded an quantity of GH¢5.3 billion losses – a compound annual enlargement of 16.2 according to cent.
Amongst the 44 SOEs and 16 JVCs scored within the draft 2020 SOEs record, 50 according to cent of SOEs and 63 according to cent JVCs reported losses, and of the 56 SOEs coated, 34 according to cent additionally posted deficits.
The Deputy Finance Minister mentioned it used to be regrettable that whilst Specified Entities, particularly SOEs, held important belongings, their efficiency and effectiveness left a lot to be desired.
Due to this fact, he mentioned, within the quick to medium time period, the Govt anticipated to put in force a financing coverage to Specified Entities, specifically to SOEs, OSEs.
The monetary coverage, he mentioned, used to be anchored on 3 primary rules; requirement for specified entities to function at the strengths in their stability sheet, capitalisation of latest specified entities to be funded handiest in the course of the sale of non-strategic belongings and now not drawn from activity earnings added to the general public debt.
“Additionally, a transparent difference of price of SOEs and JVCs purely business actions from the ones incurred in exercising their public coverage duties, this is quasi-fiscal actions, the latter will probably be reimbursed consistent with the dictates of the State Possession Coverage topic to the federal government’s approval,” he added.
The ones projects, Dr Kumah maintained, would now not quantity to a lot with out exemplary management., and subsequently known as at the newly inaugurated Board Participants of State-Owned Enterprises to leverage suitable gear of era to support their control and operations.
He known as at the Forums to undertake trade fashions that improve productiveness, business viability and monetary sustainability, including that efficient management used to be essential in breaking the inefficient state firms’ narrative.
Mr Edward Boateng, Director Common, SIGA, mentioned interactions with Specified Entities and a overview of to be had paperwork, had printed the problem of loss of coverage coherence amongst state establishments.
He mentioned conflicting insurance policies and movements throughout govt companies, departments and Specified Entities had blurred the average objective and ended in “pointless turf wars, duplication of efforts, delays and prime price of doing trade” amongst others.
Mr Boateng mentioned streamlining current insurance policies or introducing new transparent ones that helped to handle the ones and different legacy problems, can be a very powerful first step to sharpen operational potency and effectiveness and assist safe funding.
He reiterated calls on Specified Entities to leverage Ghana’s virtual transformation schedule to harness the possibility of the entities, pronouncing “Ghana goes virtual and we should be a part of it.”
SIGA used to be established on June 7, 2019, beneath the SIGA Act 2019 (ACT 990) with the mandate to supervise and administer the efficiency of SOEs, JVCs, and OSEs.
GNA