President John Mahama has issued a strong warning to state-owned enterprises (SOEs) to improve their performances or else there will be consequences.
Speaking at a meeting with SOE CEOs organised by the State Interests and Governance Authority (SIGA) on March 13, 2025, President Mahama stressed that his government would no longer tolerate financial mismanagement and inefficiencies within state enterprises.
According to the President, those that fail to improve their performance will either be reformed, merged, privatised, or shut down.
“Loss-making SOEs will no longer be tolerated,” he declared. “They will be swiftly reformed, merged, privatised, or shut down. Corruption, procurement fraud, and financial mismanagement will be prosecuted strictly, and boards that rubber-stamp poor decisions will be replaced.”
Mahama further announced his government’s commitment to clamp down on corruption, financial mismanagement among heads of SOEs as well as do away with the phenomenon where heads of SOEs use state resources for personal gain.
“Corruption, procurement fraud and financial mismanagement will be prosecuted strictly and boards that rubber stamps poor decisions will be replaced. The practice also of and in a few cases using entity resources and funds to indemnify board members from accountability must cease immediately,” the President added.
“SOEs must deliver strategic value particularly in energy, transport, manufacturing, agriculture and finance to support Ghana’s industrialization and the 24-hour economy initiative,” he stressed.
The President’s firm decision comes on the back of numerous corruptions, procurement fraud and loss making by State-Owned Enterprises in recent years.
Mahama outlined a number of measures to transform non-performing state entities which he said the State Interests and Governance Authority (SIGA) will be at the centre of this transformation to evolve from a passive observer into an empowered enforcer of national interest.
These measures include;
- SIGA will act as a command centre and will be equipped with executive authority to negotiate and enforce performance contract with heads of entities.
- Conduct regular in-depth assessment of SOEs finances ensuring transparency and exposing mismanagement.
- Issue binding directives and implement compliance mechanisms and intervene directly in underperforming entities.
- Commission independent audits to identify inefficiencies and financial leakages.
- Set and monitor performance metrics with tangible consequences for non-performance.