Loss-making SOEs will not be tolerated – Mahama warns

President John Dramani Mahama has declared that the era of mediocrity and financial mismanagement in State-Owned Enterprises (SOEs) must come to an end.

He has consequently warned that loss-making SOEs will no longer be tolerated and will either be merged, privatized, or closed.

Speaking at a meeting with CEOs of specified entities under the State Interest and Governance Authority (SIGA) on Thursday, March 13, President Mahama called for a complete reset of SOEs to drive their transformation.

“I will assess you based on your performance. If you do not align with the pace of the reset agenda, you may be asked to step aside. If that adds to the horror movie, so be it,” he stated, warning that “the era of impunity, mediocrity, and financial recklessness must end today.”

His comment comes in the wake of Finance Minister Cassiel Ato Forson’s revelation that many SOEs are struggling financially and have failed to achieve profitability.

According to President Mahama, the meeting was not just a forum for discussion but a decisive call to action, demanding bold leadership, accountability, and an unwavering commitment to excellence from SOE executives.

“This meeting reaffirms my commitment to shaking up loss-making SOEs and realigning them to break even and transition into profitability. My 2024 campaign promises and the 120-day social contract with the people of Ghana were not mere rhetoric,” he stated.

President Mahama cited the 2023 State Ownership Report produced by SIGA, which highlighted inefficiencies plaguing SOEs, necessitating decisive action. He noted that many specified entities have operated inefficiently for too long, weighed down by waste, underperformance, conflicts of interest, and a lack of national interest alignment.

“Many SOEs have been used as mere instruments for personal wealth accumulation by appointees. The chief executives, management, and boards of these enterprises are responsible for this situation. Some SOEs have become perennial loss-makers, draining public funds with bloated budgets, unjustified allowances, and unnecessary expenditures while relying on government bailouts as if entitled to them. Many of these entities are at their lowest point in the entire history of the Fourth Republic,” he added.