Thirty-Two SOEs sign
performance contracts
Accra, Aug 4, GNA – Finance Minister Dr
Kwabena Duffuor on Tuesday reiterated government’s resolve
to make available financial resources to State-Owned
Enterprises (SOEs) to enable them to deliver on their
mandate.
However, resources would only be provided on the examination
of the merit of each case, he said.
The performance contracts aim at ensuring that the
organizations involved attain the targets negotiated with
the State Enterprises Commission (SEC) and the Government.
Speaking in Accra at the signing of performance contracts by
32 SOEs, including the Ghana News Agency, the Finance
Minister said government would also intensify its oversight
and regulatory role over State Owned Enterprises to reduce
the fiscal risk that they posed to the economy.
The Chief Executives of the SOEs, supported by the Board of
Directors, signed the contracts on behalf of their
respective organizations while sector Ministers signed for
the Government.
Dr Duffuor said the constant losses of SOEs and the
consequent accumulation of excessive debt was a source of
significant challenge to effective fiscal management.
“Because SOEs are a potential source of fiscal risk, it is
important that the government systematically and frequently
monitors your operations and report to the public with
enough evidence that the risks are properly evaluated and
mitigated,” he said.
In this connection, Dr Duffuor said, government intends to
establish a more effective and rigorous performance
monitoring system to ensure that performance lapses were
identified on a more frequent basis.
The Minister tasked the State Enterprises Commission to set
up a comprehensive database of all SOEs to enhance the
submission of quarterly consolidated reports to the Finance
Ministry.
Dr Duffuor was not pleased with the poor dividend payment
records of SOEs, and appealed to the enterprises to commit
to making meaningful contributions to the consolidated fund.
Records indicate that only three out of 28 SOEs have been
paying dividends annually in the past four years.
This year, the Government has earmarked to receive 15
million Ghana Cedis from its investments in both joint
venture companies and state owned enterprises. However, only
5.2 million Ghana Cedis had been received by June.
While admitting that some enterprises were set up to provide
social services, Dr Duffuor said that did not absolve them
from the responsibility of using resources judiciously and
maintaining financial sustainability.
He, therefore, tasked the Boards and Management to come out
with alternative and innovative ways to change the fortunes
of the companies.
Mr Yao Klinogo, Acting Executive Chairman of the SEC,
reiterated the need for Managements of SOEs to live by the
tenets of accountability and transparency in the discharge
of their duties.
He said while autonomy was required to ensure the effective
performance of SOEs, this must go hand-in-hand with good
financial management practices and responsibilities to
achieve set goals.
The Performance Monitoring and Evaluation (PME) system of
the SEC is the method by which managers of these enterprises
are granted full autonomy to operate and ensure efficiency,
effectiveness and profitability.
Mr Klinogo asked Boards and Managements to go beyond the
symbolic signing of the contracts to making sure that they
met the targets negotiated.
He said the improved performance by SOEs would help to
remove the negative perception that they were a drain on
Government resources.
Mr Klinogo called for effective collaboration between Board
and management to avoid conflicts.
The SOEs included the Ghana Broadcasting Corporation,
Graphic Communications Group, New Times Corporation,
Electricity Company of Ghana, Volta River Authority, Volta
Lake Transport, and Precious Minerals Marketing Company.
GNA
