President Akufo-Addo has cautioned heads and management of state-owned enterprises that delays in the preparation and publication of state ownership reports (SORs) which allow the government and the general public to access information and the performance of public enterprises, will no longer be tolerated.
President Akufo-Addo directed all board chairpersons, heads of state entities, and management teams to fully comply with the submission requirements set out by the State Interest and Governance Authority (SIGA). This directive was given during the 2024 Annual Policy and Governance Forum in Accra on April 23, 2024.
“SIGA is mandated to prepare the State Ownership Report (SOR) which serves among others as an accountability and transparency document. The SOR gives government and the public access to information on public enterprises, and financial and non-financial performance. The 2023 SOR is the first to be published under the ‘Public Management of Service Delivery Programme,’ and it is expected to be completed on or before 31 August 2024. Failure to achieve this target will affect adversely the terms of our financial arrangement with the World Bank.”
President Nana Addo Dankwa Akufo-Addo
President Akufo-Addo revealed that the World Bank assessment in 2015 identified weak corporate governance and management, fragmentation of oversight responsibility, political interference in management, and general mismanagement as major causes of poor performance in public organizations.
Additionally, President Akufo-Addo highlighted positive developments, such as the increase in the number of specified entities included in the national accounts and the significant increase in total revenue by these entities. However, he stressed that there is still a long way to go to achieve the ambitious goal of having the public enterprises sector contribute 30% of the country’s GDP.
“For example, the latest report from the Controller and Accountant General’s Department indicates that the number of specified entities including in the national accounts has increased from 19 in 2020 to 62 in 2022. This is because companies now prepare accounts to report on their financial operating performance.”
President Nana Addo Dankwa Akufo-Addo
President Akufo-Addo said, “Though impressive, there is still a long way to go from here. It is heartwarming to observe that by 2021, specified entities have significantly increased their total revenue by 121.8 billion cedis compared to some 34.8 billion cedis in 2016.”
Commitment to New Code
The forum aimed to launch the Code of Corporate Governance for Specified Entities and Public Service Organizations in Ghana, intended to guide and transform corporate governance practices within these organizations.
At the event, the Director General of SIGA, Mr John Boadu, Deputy Minister for Finance, Dr Stephen Amoah, the Minister for Public Sector Reforms, Samuel Cudjoe, and the Board Chairman of the Public Service Commission Prof. Victor Kwame Agyeman, shared their thoughts on the code of corporate governance for specific entities and public service organizations in Ghana.
They further pledged to work together to ensure the adoption and implementation of this code by all state entities.
On the charge of the President, public officers pledged to work hand in hand to ensure that the code of corporate governance for specific entities and public service organizations in Ghana is first adopted by all state entities and is fully implemented by all institutions that are bound by its provisions.
The Code also delves into Environmental, Social, and Governance (ESG) principles, a concept that has to gained much recognition in the realm of corporate governance in recent times. The issuance of this Code represents a feather in the cups of SIGA and PSC.
Beyond this code, the two institutions will continue to collaborate, and with other central management agencies, provide effective oversight and support to the Entities under the respective purview, in the implementation of this Code. This will help avoid duplication and minimize transactional costs for the Entities, without compromising on their respective statutory mandates.
President Akufo-Addo’s directive underscores the government’s commitment to improving transparency, accountability, and performance in state-owned enterprises through timely reporting and adherence to corporate governance standards.
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