Auditor General’s Report: Drill down into causes of SOE infractions, Akufo-Addo charges SIGA

The President of the Republic, Nana Addo Dankwa Akufo-Addo, has instructed the director general of the State Interests and Governance Authority (SIGA) to collaborate with the Auditor General’s Department to drill down into the causes of recurring infractions by state-owned enterprises (SOEs) and specified entities.

The SIGA leadership and the AG must identify those responsible and make recommendations on how to deal with the challenges, he said.

President Akufo-Addo made these demands as he addressed the chairpersons of specified entities from across Ghana in the Banquet Hall at Jubilee House in Accra today (3 October 2022) during a meeting called at his instance.

“I am directing the director general of SIGA to work with the Auditor General to drill down [and find] the causes of the infractions, identify persons responsible and make the necessary recommendations as prescribed by law. I have given them four months to submit a report to the Chief of Staff,” President Akufo-Addo announced.

Auditor General’s Report

The president said he hoped that the chairpersons had taken full note of the Auditor General’s Report and noted that it “clearly shows an increase in infractions, which demands answers from all” state entities.

“Let us remember that specified entities have been set up to provide efficient public services, promote public economic activities and contribute to our GDP, reduce our imports, increase our exports and thereby strengthen our economy while creating jobs for our people.

“However, the current trend of affairs neither portrays that picture nor reflects positively on the managers of our specified entities, oversight institutions and government itself,” President Akufo-Addo said.

“There is a clear indication of poor supervision and management, as well as poor enforcement of implementation and sanctions of the needed measures.

“I appointed you as leaders of these specified entities with the strong belief that you will ensure a positive change in the narrative of loss-making entities and build value for the people of Ghana. That has not happened, so I expect more from you,” the president said.

Marked improvement

At the meeting with the chairpersons, President Akufo-Addo said he sought to know from them “what they believe are the causes and for us to agree on solutions to address these infractions pointed out by the Auditor General and the 2020 State Ownership Report”.

“I want to see a marked improvement in these reports next year. Things have to change. We are not in normal times and people are eager to blame somebody.

“Let us not make it easy for people to blame us. We can defend and be excused for what is humanly beyond our control, but for those that fall under our purview of responsibility and capacity, let us do our best,” President Akufo-Addo told the chairpersons.

Boards’ supervisory role

Touching on the supervisory role of board members of state-owned enterprises, President Akufo-Addo said he will continue to advocate good corporate governance practices in specified entities, where boards effectively oversee and direct the management of state-owned institutions.

“Boards must desist from interfering in the day-to-day management of their respective entities and making unwarranted demands on the management.

“I entreat you to take seriously the honour bestowed on you to serve your country, contribute to its socio-economic development and ensure improved performance of your specified entities,” the president said.

Improving SoE performance

In his address, the director general of SIGA, Edward Boateng, lamented the poor performance of specified entities in their overall contribution to Ghana’s GDP.

He added that as part of efforts by SIGA to improve the performance of specified entities, they are developing a code of corporate governance to support boards and managers of SOEs in discharging their duties.

“Specified entities together control 5% of our national assets and, as such, we must lift our game. Contributing less than 5% of GDP of the country is not acceptable,” said Boateng.

SIGA

SIGA is the acronym for the corporate body established with the passage of the State Interests and Governance Authority Act 2019 (Act 990) in June 2019.

It has the mandate to oversee and administer the state’s interests in state-owned enterprises, joint-venture companies and other state entities and to provide for related matters.

With presidential assent to SIGA on 7 June 2019, the laws which established both the State Enterprises Commission (SEC) and the Divestiture Implementation Committee (DIC) were repealed, with their assets and liabilities transferred to the new entity.

Rationale behind SIGA

SIGA is set up to provide a far better ownership and governance framework for SOEs, JVCs and OSEs than previously existed.

The aims behind strengthening these frameworks are to increase shareholder value and ensure better returns on investment; to provide better co-ordination among state entities (commercial and non-commercial) and other stakeholders; to enhance the capacity of heads and employees to deliver on their core mandate in the changing business environment; and to ensure customer and consumer satisfaction.

Wilberforce Asare

Asaase Radio 99.5 broadcasts on radio via 99.5 in Accra, 98.5 in Kumasi, 99.7 in Tamale, 100.3 in Cape Coast and on our affiliates Bawku FM 101.5 in Bawku, Beats FM 99.9 in Bimbilla, Somua FM 89.9 in Gushegu, Stone City 90.7 in Ho, Mining City 89.5 in Tarkwa and Wale FM 106.9 in Walewale
Tune in or log on to broadcasts online: asaaseradio.com, Sound Garden and TuneIn
Follow us on Twitter: @asaaseradio995
Live streaming: facebook.com/asaaseradio99.5. Also on YouTube: Asaase Radio Official.
Join the conversation. Call: 020 000 9951 or 059 415 7777. Or WhatsApp: 020 000 0995.
#AsaaseRadio