Recent statements from stakeholders in Ghana indicate that while many State-Owned Enterprises report losses, a select few, namely Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company, have maintained profitability and paid dividends to the state since 2019. The ten largest SOEs, however, faced significant losses, primarily driven by ECG and GWCL. President Mahama has warned against mismanagement among SOE CEOs.
In recent discussions, Ghana’s Minister of Finance and various stakeholders have expressed concerns regarding the significant losses recorded by State-Owned Enterprises (SOEs) in the country. However, Professor Michael Kpessa-Whyte, the Acting Director-General of the State Interests and Governance Authority (SIGA), highlighted that several SOEs have been profitable and have contributed dividends to the state over the past five years.
Notably, the Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company have all consistently generated profits and paid dividends from 2019 to 2023. Professor Kpessa-Whyte stated, “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, it was reported that the ten largest SOEs in Ghana based on asset value incurred a net loss of GH¢11 billion in 2023, surpassing the total losses of all fifty-three SOEs. This figure highlights the financial difficulties faced by these organizations. Significant losses were attributed to the Electricity Company of Ghana (ECG), which accounted for GH¢10 billion, and Ghana Water Company Limited (GWCL) with a deficit of GH¢3 billion.
“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,” Professor Kpessa-Whyte remarked during this discussion. In response to these developments, President John Mahama cautioned the CEOs of SOEs against mismanagement of financial resources and expressed his intent to dismiss any non-performing executives.
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In summary, while the financial situation of many State-Owned Enterprises in Ghana presents challenges, there are notable exceptions that have demonstrated profitability. Specifically, the Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company have contributed positively to state revenues since 2019. However, the overall losses of major SOEs raise significant concerns, leading to warnings from the President regarding financial governance within these entities.
Original Source: www.ghanaweb.com
