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SEC gives final warning to SOEs to submit audited accounts
Accra, Feb. 18, Ghanadot/GNA – The State
Enterprises Commission (SEC) on Monday gave its final
warning to State-Owned Enterprises (SOEs) to submit audited
accounts before the end April this year or face sanctions.
Mr Frank Ocran, Executive Chairman of the SEC, who gave the
warning said: “The Commission has the mandate and therefore
would not hesitate to recommend sanctions to government
about any company or institution that would fail do so.”
He said such recommendation could take the form of removal
of directors/managers and/or some management staff of
companies.
Speaking at the 2008 Performance Contract Signing ceremony
between the SOEs and government, Mr Ocran said: “As of today
only 23 SOEs have their accounts audited for 2005 and 10
SOEs have theirs audited for 2006.
“This is certainly not good corporate governance practice
and should be curtailed.”
He said at present, the SEC was waiting for audited accounts
to enable it to complete its evaluation and selection of
award winners for 2006 and 2007 operational years.
Mr Ocran said: “Each year you’re given billions of cedis and
for you to sit down and not account for it is a very serious
matter, which should not be toyed with.”
He said even though the SOE Awards Ceremony was revived last
year, the event had delayed because most SOEs had failed to
audit their financial statements in time.
Mr Ocran commended seven SOEs namely, Ghana News Agency,
Irrigation Development Authority, Electricity Company of
Ghana, GIHOC Distilleries, Volta River Authority, Ghana
Highway Authority and ICOUR Limited for submitting requisite
documents to the Commission in time as well as going through
negotiation without any rescheduling.
Board of Directors and Managers of 29 SOEs signed the
performance contract with their respective sector Ministers
and Government of Ghana represented by the Minister of
Finance and Economic Planning.
Mr Ocran said the efforts of SOEs should extend beyond the
signing of the documents to exceeding the targets contained
in them or at worse meet them as negotiated.
“If we are able to do this, which we at SEC have confidence
in you that you can do, then, it would contribute greatly to
enhancing the image of the SOE sector,” he said.
Mr Ocran gave the assurance that the Commission would
continue to promote good corporate governance practices in
public enterprises through, among other things, organization
of workshops and interactions.
The organisation of Annual General Meetings (AGMs) by SOEs,
he said, would soon become one of the yardsticks for which
directors and managers would be asked to continue their
service.
He said the Commission would intensify its effort at getting
SOEs to embrace the accountability and transparency that the
holding of AGMs promoted.
Mr Ocran said the SEC would give special assistance to SOEs
to enable them to hold AGMs before the end of July each
year.
GNA
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