Mr Edward Boateng, the Director-General of State Interest and Governance Authority (SIGA), has disclosed that state entities will from next year be capitalized with the Ghana Stock Exchange (GSE) as part of plans to make them profitable.
According to the Director-General, cocktail of measures according to SIGA included, but not limited to diversifying on the stock market, but also accessing Foreign Direct Investor (FDI) and possibly local investment to recapitalise a number of these distressed entities and entities that have the potential to become profitable.
“In terms of recapitalisation, we are also talking to the Ghana Stock Exchange. They believe that some of our distressed entities have the commercial potential that they can help capitalise. So, we are working with them and have sent a memo to cabinet for the consideration of the President and his team.”
Mr Edward Boateng
Mr Boateng noted he was expectant the memo submitted to cabinet would yield the necessary results that would enable SIGA commence with the recapitalisation agenda of some of the entities. “When it comes back, you’ll see some action in that regard, hopefully next year where some of our entities will be recapitalised with the GSE,” he said.
The Director-General indicated that apart from exploring the option of recapitalising the entities through the GSE, SIGA is also looking for both local and international partners for some of the entities to be recapitalized by them.
“Now in terms of governance, when new capital comes into businesses, it comes with a new set of rules and regulations, and the stock exchange would not put money into activities that were poorly managed. That will have to change.”
Mr Edward Boateng
Mr Boateng, who is also the former Ghana Ambassador to China, noted that SIGA is working on ensuring efficient corporate governance of these entities, saying “whether we put money in or not, we expect that they are properly and efficiently governed”.
SIGA Working to Secure its Mandate
Mr Boateng averred that SIGA, although created about three years ago, was working to secure its mandate and also position it as efficient and excellent entity, and demands same from entities under its watch.
Mr Boateng further stated that per the act established by SIGA, Act 990, about 175 SOEs and entities are under its watch, and expected to work to become profitable and pay dividends to the government. He disclosed that in 2020, about 65 of these entities were supposed to have paid dividends to the government, however only about five per cent paid their dividends.
The Director-General noted that as part of their mandate, they are expected to promote the efficient or where applicable profitable operations of specified entities, oversee, and administer the interests of the State in specified entities, enforce compliance of good corporate governance and higher standard of excellence, and it is working towards achieving it.
“Our mandate also includes acquiring, receiving, holding and administering or disposing of shares of the State in state owned-enterprises and joint-venture companies.”
Mr Edward Boateng
Mr Boateng asserted that SIGA would not hesitate to recommend to government to diversify its interest in entities that were not living up to their mandate, thus non-profitable.
The Director-General of SIGA, Mr Edward Boateng, disclosed to the media in Accra when his outfit took its turn at the State of the Agencies Report, organised by the Ministry of Information in collaboration with SIGA.
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