Ghana’s State Owned Enterprises have experienced mixed financial performance, with notable profits from Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and the State Housing Company between 2019 and 2023. Conversely, the ten largest SOEs recorded a collective loss of GH¢11 billion in 2023, primarily due to the losses incurred by ECG. President John Mahama has warned SOE CEOs against mismanagement.
In recent discussions, government officials, including the Minister of Finance, have expressed concerns regarding the financial losses suffered by State Owned Enterprises (SOEs) in Ghana. However, according to Professor Michael Kpessa-Whyte, the Acting Director-General of the State Interests and Governance Authority (SIGA), several SOEs have remained profitable and have contributed dividends to the state over the past five years.
The notable profit-making SOEs in Ghana include Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company. From 2019 to 2023, these organizations consistently reported profits and paid dividends to the government. Professor Kpessa-Whyte noted, “It’s not all bad news. The best-performing SOEs include Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company. From 2019 to 2023, they have consistently made profits and contributed dividends to the state.”
Conversely, the situation appears grim for Ghana’s largest SOEs. In 2023, the ten largest SOEs by asset base recorded a combined net loss of GH¢11 billion. This staggering loss far surpassed the total losses incurred by all 53 SOEs. The Electricity Company of Ghana (ECG) was primarily responsible for this deficit, which accounted for GH¢10 billion, while the Ghana Water Company Limited (GWCL) reported a shortfall of GH¢3 billion. Professor Kpessa-Whyte commented, “10 SOEs with the most assets recorded an aggregate net loss of GH¢11 billion in the financial year 2023, which surpasses the total loss of all 53 SOEs. ECG alone accounted for GH¢10 billion.”
In light of these developments, President John Mahama has issued a stern warning to the CEOs of SOEs regarding the management of financial resources. He emphasized his commitment to acting against non-performing executives, indicating that he would not hesitate to relieve them of their duties should they fail to meet performance expectations.
In summary, while certain State Owned Enterprises in Ghana have demonstrated strong financial performance and profitability by generating dividends for the government, overall losses among the largest SOEs have raised alarms. The significant deficits faced by major entities such as ECG underscore the challenges affecting the sector. Leadership accountability remains a critical measure for addressing these financial issues.
Original Source: www.ghanaweb.com
