The President of IMANI Africa, Franklin Cudjoe, has described the boards of State-Owned Enterprises as overly politicized.
Mr Cudjoe revealed that there is the need to privatize some of these enterprises to ensure their profitability to the state. He explained that despite the fact that there has been some improvement in the performances of some State-Owned Enterprises as a result of the employment of some world-class professionals, the boards of these enterprises have been an impediment.
The IMANI President noted that politicization of these boards has led to many interference in the work of these world-class professionals thus posing an additional challenge.
“The boards have become overly-politicized and they tend to interfere in the work of most of these agencies. And I think that is where the challenge really is… Otherwise, I still think that yes, there are a few of them that could do much better if they were treated as purely private enterprises”.
Franklin Cudjoe
Citing the Electricity Company of Ghana for instance, Mr Cudjoe indicated that “it’s a shame” that the private sector participation that was embarked upon with the Americans failed. He emphasized that for obvious reasons, that was “sorely” needed.
Mr Cudjoe revealed that in spite of the fact that some State-Owned Enterprises such as the Ghana Water Company Limited, has note been privatized, their excuse for huge losses is rather “very hard to take”. Owing to this, Mr Cudjoe has suggested that poor performing companies ought to be put up for sale.
“I believe if you consistently listen to the Ghana Water Company, the excuse that by the nature of how they’re set up, they’re necessarily supposed to be making losses is very hard to take. Water is treated with a lot of tax-payer money, you just don’t give water out and you fold your arms and say that people are not paying bills and so you should be considered as a publicly free good. I’m not sure if it were my private money, I would be thinking in those terms”.
Franklin Cudjoe
Privatization of State-Owned Enterprises
Prior to this, Mr Cudjoe highlighted that the government’s decision to privatize non-performing state agencies is long overdue. He expressed that the decision is not surprising to him since he expected it a long time ago.
“I am not surprised about this development… I think it is long overdue”.
Franklin Cudjoe
Mr. Cudjoe however urged the government not to sell off these state agencies to some persons in government as witnessed in some cases in the past. He noted that government must avoid any arrangement which will lead to “crony’s capitalism”.
Mr. Cudjoe, thus expressed that there should be an independent valuer for these agencies to be sold to independent individuals.
“If I had my way, I will privatize storage of water because it is money we use in making the water clean for it to be sold and of course, it can be sold at some affluent areas. So, there are various parameters for determining state value or private ownership of these assets.”
Franklin Cudjoe
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