Amid concerns about losses in Ghana’s State-Owned Enterprises, certain entities, namely Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company, have reported profits from 2019 to 2023, contributing dividends to the state. Conversely, ten largest SOEs recorded a combined net loss of GH¢11 billion in 2023, primarily due to significant losses by ECG and GWCL, prompting warnings from President John Mahama regarding the consequences of financial mismanagement.
In light of the recent financial struggles of State-Owned Enterprises (SOEs) in Ghana, the Minister of Finance and various stakeholders have expressed concern regarding the increasing losses. Nevertheless, Professor Michael Kpessa-Whyte, the Acting Director-General of the State Interests and Governance Authority (SIGA), highlighted that certain SOEs have continued to thrive despite these challenges.
The best-performing SOEs between 2019 and 2023 include Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company. These organizations have consistently generated profits and contributed dividends to the state. “It’s not all bad news. The best-performing SOEs include Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company. From 2019 to 2023, they have consistently made profits and contributed dividends to the state,” Professor Kpessa-Whyte stated.
Conversely, the ten largest SOEs by asset base reported a net loss totaling GH¢11 billion in 2023. This loss exceeds the collective losses reported by all 53 SOEs and exacerbates their financial constraints. The Electricity Company of Ghana (ECG) bore the brunt of these losses, accounting for GH¢10 billion, while the Ghana Water Company Limited (GWCL) faced a shortfall of GH¢3 billion. “10 SOEs with the most assets recorded an aggregate net loss of GH¢11 billion in the financial year 2023, which surpasses the total loss of all 53 SOEs. ECG alone accounted for GH¢10 billion,” he explained.
In response to these concerns, President John Mahama has delivered a stern warning to the CEOs of SOEs regarding the mismanagement of financial resources. He asserted that he would not hesitate to terminate the employment of non-performing CEOs, underscoring the need for accountability within these enterprises.
In summary, while certain State-Owned Enterprises in Ghana have demonstrated consistent profitability and contributions to the state over the past five years, the financial landscape remains concerning. The reported losses from the larger SOEs signal significant financial challenges that require immediate attention and may result in leadership changes to improve performance. Stakeholders, including government officials, are calling for heightened diligence in the management of public resources to mitigate future losses.
Original Source: www.ghanaweb.com
