President Mahama Warns Persistent SOE Losses Will No Longer Be Charged To National Budget
President John Dramani Mahama has cautioned that the government will no longer bear the cost of continuous financial losses recorded by State-Owned Enterprises (SOEs).
He has consequently called on the boards and management of SOEs to improve their efficiency, accountability and ability to generate profits.
Speaking at a conference organised by the State Interests and Governance Authority (SIGA) at the La Palm Royal Beach Hotel, President Mahama said the government had adopted a new approach to managing its relationship with state-owned enterprises and would expect better returns from institutions responsible for public assets.
He said SOEs must take greater responsibility for their operations, stressing that repeated reliance on government funding was putting additional pressure on the national budget.
“Persistent losses will no longer be quietly absorbed into the national budget,” President Mahama said.
The President said appointments to leadership positions within SOEs should be tied to clear performance targets, value creation and profitability.
He also reminded boards, chief executives and management teams that the assets placed under their supervision are ultimately owned by the Ghanaian people.
Among the assets he mentioned were the country’s ports, power infrastructure, factories, water systems, pension funds, lands, buildings, equipment and government-owned shares.
“These assets do not belong to any government, a board, or a chief executive. They belong to the people of Ghana, and you and I hold them only in trust for the people,” he said.
President Mahama said the key principle underpinning the conference was that state ownership must translate into tangible benefits for the public.
He therefore challenged the institutions participating in the conference to provide credible evidence of the value they have created for the people of Ghana.
