President Akufo-Addo Demands Compliance and Accountability from State Enterprises

President Nana Addo Dankwa Akufo-Addo has issued a stern directive to heads of state-owned enterprises (SOEs) in Ghana, demanding full compliance with financial reporting requirements and emphasizing the importance of discipline and good corporate governance. The President's call for accountability comes as the government seeks to enhance transparency and ensure that SOEs contribute effectively to the national economy.

During a recent address, President Akufo-Addo ordered all SOEs to submit their audited financial statements for the year 2023 to the State Interests and Governance Authority (SIGA) no later than May 15, 2024. "I have directed all board chairpersons and management teams of specified entities to fully comply with the requirement for the submission of audited accounts and financial statements to SIGA by May 15, 2025," the President stated. He further instructed the Director General of SIGA, John Boadu, to furnish him with a list of all entities that fail to comply with the directive by May 31, 2024.

The President underscored the significance of timely compliance, warning that delays in the preparation and publication of the annual State Ownership Report (SOR) will no longer be tolerated. "These financial statements are critical for the preparation of the annual State Ownership Report by SIGA," he emphasized. The 2023 SOR is expected to be completed and published by August 31, 2024, and failure to meet this deadline could have adverse consequences for the country's financial arrangements with the World Bank.

The President also launched two policy documents aimed at strengthening state ownership policy and adherence to good corporate governance principles. The Code of Corporate Governance for Specified Entities and Public Service Organisations, along with the State Ownership Policy, define the government's ownership portfolio and provide guiding principles for the management and governance of state interests in specified entities.

President Akufo-Addo noted the progress made by SOEs, with their contribution to GDP increasing from GH¢10 billion in 2020 to GH¢58.27 billion in 2022, and their total assets in the National Account rising from GH¢51.8 billion to GH¢419.2 billion during the same period. However, he stressed that reluctance to comply with oversight mechanisms erodes the fabric of transparency and accountability.

The Acting Director-General of SIGA expressed optimism about the potential of the new policies to bolster corporate governance within SOEs and reduce reliance on government support. He assured that SIGA would closely monitor compliance with the President's directive and take appropriate actions against entities failing to meet the deadline. President Akufo-Addo's stern warning to SOEs underscores the government's resolve to maintain discipline, transparency, and accountability in the management of state enterprises, ensuring they operate efficiently and contribute meaningfully to Ghana's economic development.

Key Takeaways

• President Akufo-Addo demands SOEs submit 2023 audited financials by May 2024.
• Failure to comply will result in entities being reported to the President by May 2024.
• Timely submission is critical for the annual State Ownership Report by Aug 2024.
• New policies aim to strengthen state ownership and corporate governance in SOEs.
• SOEs' contribution to GDP rose from GH¢10B in 2020 to GH¢58.27B in 2022.