Mr Joseph Cudjoe, the Minister in charge of Public Enterprises, has disclosed that the government is contemplating disposing about 17 defunct state-owned enterprises (SOEs) that are listed in the books of the State Interest and Governance Accountability (SIGA).
Mr Joseph Cudjoe noted that the list of the enterprises have already been submitted to cabinet for approval and would be made public once the approval was given.
Mr Cudjoe made this disclosure to the media in Accra when he took his turn at the bi-weekly Minister’s briefing organised by the Ministry of Information.
Mr Cudjoe indicated that the study undertaken by the government and completed in 2019 estimated that the market value of the State’s equity holding in 63 active entities stood at GH¢ 35.7billion as of December 2016.
The Minister explained that State Owned Enterprises (SOEs) accounted for 92 per cent of this value while the remaining eight per cent represented the State’s equity stake in Joint Venture Companies (JVCs).
Mr Cudjoe noted the government has undertaken some steps to bring sanity into the SOE space and these steps include restructuring of active companies, listing on the Ghana Stock Exchange, looking for strategic investors, liquidation and disposing some off totally.
Mr Cudjoe stated that as part of measures to ensure efficiency, he had interactions with boards and management of about 44 specified entities.
“The visits helped to resolve pertinent issues relating to the entities. It afforded the entities the opportunity to raise challenges they were facing which required support and direction especially from SIGA.”
Mr Joseph Cudjoe
Capacity-Building Workshops for Boards of Specified Entities
In addition, he disclosed that capacity-building workshops for boards of specified entities were held for them. These workshops Mr Cudjoe said, was aimed at developing their skills and capacities in four key areas: corporate governance and the board, financial stewardship and accountability, legal and regulatory framework for specified entities and public procurement for Specified Entities
Mr Cudjoe added that separate training was also organised on corporate governance for board secretaries and the training was to enable them to provide support to their boards and strengthen their understanding of their duties.
Mr Cudjoe noted that the first Public Enterprises League Table (PELT), a ranking tool for assessment of performance of specified entities had been instituted and the first one published already.
He said the league was based on performance indicators provided in the performance contract signed between SIGA and the Entities and was expected to engender a healthy competition among the entities for improved performance and to recognise the best performing entities.
The beginning of what is now the State Interests and Governance Authority, SIGA is traceable to the State Enterprise Secretariat (SES), which was incorporated in 1965 under a Legislative Instrument (L.I. 47).
The core mandate of the State Enterprise Secretariat is to promote within the framework of Government policy, the efficient and profitable operations of Statutory Corporations engaged in trade and industry.
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