President Nana Addo Dankwa Akufo-Addo has commended the State Interest and Governance Authority (SIGA) for helping to significantly reduce financial losses among State-Owned Enterprises (SOEs) by over 40% in 2023.
He, however, raised concern over the continued financial underperformance of certain State-Owned Enterprises and their failure to comply with SIGA’s mandate to submit audited financial statements and management accounts.
Addressing the 2024 SIGA Annual Stakeholders Engagement held at Kwahu Nkwatia in the Eastern Region, President Akufo-Addo said, “The particular area that deserves attention is compliance. Despite the significant progress made, some entities continue to operate at a loss. And certain institutions have resisted SIGA’s oversight.”
“We must address these issues swiftly and decisively. Transparency and accountability are not negotiable. They are the bedrock on which effective governance is made. Submitting to the oversight and signing performance contract is not an infringement of the autonomy of the entity,” the President pointed out.
Established in 2015 following a World Bank diagnostic study, SIGA was created to address governance issues such as fragmented oversight, weak management practices, and lack of transparency within SOEs.
The President called on SIGA to further enhance its oversight capabilities, embrace technological innovations like Artificial Intelligence, and focus on building the capacity of SOEs, to enable the SOEs meet the target contribution of 30% to the country’s GDP.
Chairman of the Parliamentary Committee on Public Administration and State Interest, Kwabena Donkor, criticized some SOEs like TOR for failing to publish audited financial accounts since 2017.
He stressed the urgent need for improved accountability and management across these entities.
The Public Sector Enterprises Minister, Joseph Cudjoe, noted that the introduction of the Public League Table has strengthened monitoring and evaluation processes within SOEs, fostering a culture of accountability and continuous improvement.
The Director General for SIGA, John Boadu, shared an overview of the agency’s achievements over the past five years.
“The number of entities covered by SIGA’s Annual Performance Contracts has grown from 50 in 2020 to 79 in 2024, with comprehensive reports published for the years 2021, 2022, and 2023. Collaboration with the Controller and Accountant-General’s Department has also expanded the number of SOEs included in the Consolidated National Accounts, rising from 19 in 2020 to 62 in 2022,” Mr Boadu disclosed.
He explained that the SOE contributions to Ghana’s GDP increased from GHC 10 billion in 2020 to GHC 58.27 billion in 2022, while their total assets surged from GHC 51.8 billion to GHC 419 billion over the same period.
The event, themed “5 Years of Championing Specified Entities Governance and Growth: The Challenges and the Way Forward,” marked SIGA’s fifth anniversary and brought together CEOs from various specified entities, including SOEs, to reflect on their progress and discuss strategies for addressing ongoing challenges.
