SOEs Must Deliver or Face Consequences – Mahama Issues Warning
President John Dramani Mahama has issued a strong warning that loss-making State-Owned Enterprises (SOEs) will no longer be tolerated, stressing that entities failing to achieve profitability will face restructuring, privatisation, or closure.
Addressing CEOs of specified entities under the State Interests and Governance Authority (SIGA) on Thursday, March 13, he called for a complete overhaul of SOEs to drive efficiency and accountability.
According to him, the culture of financial mismanagement, inefficiency, and waste must come to an end, with leaders held accountable for their performance.
He emphasised that his administration would assess SOE executives strictly based on results, stating, “If you do not align with the pace of the reset agenda, you may be asked to step aside.”
He reaffirmed his commitment to fulfilling his 2024 campaign promises and his 120-day social contract by pushing for profitability and efficiency within these entities.
His remarks follow Finance Minister Cassiel Ato Forson’s revelation that several SOEs remain financially distressed, with many struggling to break even. The 2023 State Ownership Report by SIGA also highlighted deep-seated inefficiencies within these enterprises, prompting the president’s demand for urgent reforms.
Mahama criticised the long-standing trend of SOEs being used for personal enrichment by appointees, leading to financial losses, bloated budgets, and wasteful spending. He maintained that government bailouts should not be treated as entitlements, especially when public funds are being mismanaged.
As part of his administration’s drive for accountability, he signalled that any SOE unable to meet expectations would either be merged, privatised, or shut down entirely, marking a shift in how state enterprises are managed in Ghana.
Story by Adwoa S. Danso
