President Akufo-Addo Directs Compliance with Financial Reporting Requirements for State Enterprises

President Akufo-Addo directs state entities to submit audited accounts by May 2025, emphasizing transparency and accountability in public enterprises. The move aims to enhance financial discipline and oversight.

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Ebenezer Mensah
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President Akufo-Addo Directs Compliance with Financial Reporting Requirements for State Enterprises

President Akufo-Addo Directs Compliance with Financial Reporting Requirements for State Enterprises

President Nana Addo Dankwa Akufo-Addo has issued a directive to all board chairpersons and management teams of specified entities, mandating full compliance with the submission of audited accounts and financial statements to the State Interests and Governance Authority (SIGA) by May 15, 2025. The President emphasized the importance of adhering to this deadline, urging the Director General of SIGA, John Boadu, to provide him with a list of all specified entities that fail to comply by May 31, 2024.

During his address, President Akufo-Addo noted that delays in the preparation and publication of State Ownership Reports (SORs) have been a persistent issue due to non-compliance by public entities in submitting their financial statements. He stressed the significance of upholding the principles of good corporate governance to ensure accountability and transparency in the operation of public enterprises.

Why this matters: The President's directive highlights the government's commitment to promoting financial discipline and transparency in the management of state-owned enterprises. Timely submission of audited accounts and financial statements is essential for effective oversight and informed decision-making, ultimately contributing to the overall efficiency and performance of these entities.

The forum also witnessed the launch of two key policy documents: the Code of Corporate Governance for Specified Entities and Public Service Organisations, and the State Ownership Policy. These documents aim to define the government's ownership portfolio and provide guiding principles for managing state interests effectively.

President Akufo-Addo highlighted the growing contribution of State-Owned Enterprises (SOEs) to Ghana's economy, with their share of GDP increasing from GH¢10 billion in 2020 to GH¢58.27 billion in 2022. Additionally, the total assets of SOEs in the National Account have risen significantly from GH¢51.8 billion to GH¢419.2 billion during the same period.

The President's directive comes amidst calls for greater transparency in the asset declarations of public officials in Ghana. Senior Presidential Advisor Yaw Osafo-Maafo recently advocated for the removal of the confidentiality provision in the current system, arguing that public access to these declarations would enhance public trust in government officials.

President Akufo-Addo reiterated his commitment to transparency and efficiency in government operations, as evidenced by his recent directive to terminate the upstream petroleum audit and minerals audit services provided by Strategic Mobilization Ghana Ltd (SML) to the Ghana Revenue Authority (GRA), based on the findings and recommendations of a KPMG audit. "The audit found issues with the engagement process, lack of technical needs assessment, and partial delivery of services by SML," the President stated.

Key Takeaways

  • President Akufo-Addo directs SOEs to submit audited accounts to SIGA by May 15, 2025.
  • Delays in SOE financial reporting hinder transparency and accountability, prompting new policies.
  • SOEs' contribution to Ghana's GDP grew from GH¢10 billion in 2020 to GH¢58.27 billion in 2022.
  • President advocates for open asset declarations to enhance public trust in government officials.
  • Audit findings lead to termination of upstream petroleum and minerals audit services contract.