Dr. Sam Ankrah, a Development Economist, has urged government to disburden non-performing State-Owned Enterprises (SOEs) which continue to be a drain on state coffers or are consistently unable to pay dividends to the private sector.
Dr. Ankrah, who made this call during an interview, was contributing to the discourse around the depleted government revenue and measures that needed to be put in place to raise more revenue regardless the attainment of the US$3bn fund from the International Monetary Fund (IMF).
In making a case for his submission, Dr Sam Ankrah pointed out the Tema Oil Refinery (TOR), State Housing Company among many others had to be left in the hands of the private sector to free the government of some resources for development.
Dr. Ankrah to elaborate on his suggestions made reference to the State Interests and Governance Authority (SIGA) report.
According to SIGA report, only 18 out of 63 SOEs, Joint Venture Companies (JVCs) and minority interest entities paid dividends to the State, particularly at a time when the government was in dire need of funds from domestic sources to make up for its inability to reach the international capital markets, to raise funds for accelerated development.
“The compliant companies paid GH¢275.48 million out of a projected dividend of GH¢290.94 million to the government in 2020,” SIGA Report stated.
“The entities that paid their dividends and signed a Performance Contract with the SIGA in 2020 were the Ghana Ports and Harbours Authority (GPHA), the Ghana Reinsurance Limited and the Tema Development Company Limited (TDC), all SOEs. The others, JVCs, were GCB Bank, Ghana Community Network Services Limited (GCNET), Ghana Women’s Fund Company Limited and GOIL Ghana Limited.
“The rest were minority interest entities and they included African Reinsurance Corporation, Anglogold Ashanti Limited, Benso Oil Palm Plantation Limited and Kinross Chirano Mining (formerly Chirano Gold Mines). The others are Goldfields Ghana Limited in Tarkwa in the Western Region; Abosso Gold Fields; Ghana Cement Factory Company Limited (GHACEM); Newmont Ghana Gold; Newmont Mining Company; Savannah Cement Company Limited and Standard Chartered Bank.”
SIGA Report
According to SIGA Report, there was a shortfall of GH¢15.46 million compared to the target. The dividends paid in the 2020 financial year represented an increase of 164.9 per cent or GH¢175.51 million compared to the GH¢103.97 million recorded for the 2019 financial year.
Dr. Ankrah further disclosed that, SIGA is yet to release its 2021 and 2022 financial years reports.
Eliminate SOEs Draining The State
Dr Sam Ankrah advised that, if some major SOEs since 2020 are continuously a drain on the state coffers and invariably the taxpayer, there is no need to keep them to be a continuous drain and not being able to pay dividends.
According to him, the worst-case scenario was the fact that some of the non-performing SOEs had been cited in the Auditor-General’s Report of 2021, and prior to their infringement of the law in terms of tax payment, led to the creation of further loss to the State.
“Some of the non-performing SOEs had been bloated with staff who did nothing or seldom did anything productive and yet, drew salaries they did not deserve.
“We have to be serious in the country because there are a lot of wrongs we are glossing over and they are hurting us badly.”
Dr Sam Ankrah
Dr Ankrah, who is also the President of the African Investment Group, in his conclusion made it known that, the private sector has the capacity to offer employment opportunities for the people because it was business-minded and would not run at a loss when given the opportunity.
At a time, when the government is to shut the doors to public sector employment, especially during his debt exchange program, the only option would be to have a vibrant private sector which had the capacity to expand and absorb the large number of unemployed youths, he indicated.
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