Weak governance structures lead to inefficiencies, financial mismanagement, and, ultimately, institutional failure -Director-General of State Interests and Governance Authority (SIGA), Prof. Michael Kpessa-Whyte, has told state-owned enterprises (SOEs).
He also mentioned that the foundation of any high-performing enterprise—whether public or private—is sound corporate governance.
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“Weak governance structures lead to inefficiencies, financial mismanagement, and, ultimately, institutional failure, but where there is strong governance, there is resilience, growth, and long-term success. I urge you to continuously strengthen governance practices in your respective institutions, ensuring that decision-making is guided by professionalism, integrity, and strategic foresight,” Prof Kpessa-Whyte said in his welcome address at the engagement with heads of specified entities hosted by his excellency. President John Dramani Mahama in Accra on Thursday, March 14.
He further stated that he was reminded of the immense responsibility that rests on their shoulders.
“We are the custodians of Ghana’s state assets, entrusted with the sacred duty of managing these resources for the benefit of our people. It is therefore our collective duty to ensure that our SOEs operate with the utmost integrity, transparency, and accountability,” he said.
As they embark on this journey, he assured them that SIGA was committed to supporting them every step of the way.
“We will work tirelessly to ensure that our SOEs operate with the highest standards of governance, transparency, and accountability. In our quest to promote efficiency and profitability of Ghana’s SOEs, we must view good governance practices not only as moral imperatives, but also business imperatives.
“At SIGA, we firmly believe that our relationship with SOEs must be horizontal, not vertical—a partnership based on mutual respect, shared responsibility, and a common goal of improving performance. We are not here to dictate but to collaborate. Our role is to support you in achieving operational excellence while ensuring accountability to the people of Ghana. This approach demands open dialogue, strategic alignment, and an unwavering commitment to efficiency and productivity,” he said.
“The foundation of any high-performing enterprise—whether public or private—is sound corporate governance.
“As stewards of national assets, we must adhere to the highest standards of transparency, accountability, and ethical leadership. Weak governance structures lead to inefficiencies, financial mismanagement, and, ultimately, institutional failure. But where there is strong governance, there is resilience, growth, and long-term success. I urge you to continuously strengthen governance practices in your respective institutions, ensuring that decision-making is guided by professionalism, integrity, and strategic foresight. Beyond governance, we must embrace the challenge of transforming our SOEs into world-class enterprises—entities that are not only financially viable but also globally competitive. The time has come to move beyond mere survival to sustained value creation.
This means investing in innovation, digital transformation, human capital development, and operational efficiency. It requires us to rethink our strategies, optimize resource utilization, and foster a culture of excellence. I dare say that the key to unlocking the potential of our State-Owned Enterprises lies in their ability to adopt best practices, innovate and adapt to changing market and social conditions.
Your Excellency, distinguished guests, we are at a turning point where incremental changes will not suffice. What we need is bold, decisive action—a collective commitment to make our SOEs models of efficiency, profitability, and national pride. We will therefore reflect these in our negotiated Performance Contracts with our SOEs and other state entities for the 2026 Financial Year which will be signed in December this year.”
Fotr his part, the Finance Minister Dr Cassiel Ato Forson said that beyond their strategic role in the economy, well-managed SOEs contribute significantly to economic growth and job creation.
However, he said, in recent years, several SOEs have faced serious financial challenges, with many recording substantial losses and accumulating debt that limits their ability to support economic growth.
“A significant number of SOEs have been operating at a loss, and their financial statements clearly reflect this reality. Some of the most striking figures include: The Electricity Company of Ghana (ECG), which recorded losses of GHS1.46 billion in 2021, GHS8.06 billion in 2022, and GHS5.96 billion in 2023.
The Ghana Grid Company (GRIDCo), which posted losses of GHS93.52 million in 2022 and GHS86.56 million in 2023. GIHOC Distilleries Limited, which reported GHS25.13 million in losses in 2022 and GHS25.56 million in 2023. Graphic Communications Group Ltd, which saw consecutive losses of GHS3.04 million in 2021, GHS4.43 million in 2022, and GHS15.18 million in 2023. Ghana Cocoa Board (COCOBOD), the largest loss-making SOE, which recorded losses of GHS2.4 billion in 2021 and GHS3.8 billion in 2022.
“To put these figures into perspective, in 2018, only two SOEs—Ghana Ports and Harbours Authority (GPHA) and Ghana Reinsurance Company—paid dividends. By 2019, the number of dividend-paying SOEs increased to three—GPHA, Ghana Re, and TDC—contributing a total of GHS14.4 million. However, as of 2024, the number of dividend-paying SOEs remained at three, with State Housing Company replacing GPHA. Collectively, they contributed a modest GHS28.7 million in dividends.”
He made the point that these persistent losses not only threaten the financial sustainability of Specified Entities but also pose a significant fiscal risk to the economy, as demonstrated by the cases of ECG and COCOBOD.
To reverse this trend, he said they must implement a bold turnaround strategy that transforms loss-making SOEs into financially viable and self-sustaining institutions.
“This strategy will require: Capacity-building initiatives to strengthen leadership and operational efficiency. Enhanced corporate governance training to ensure strict regulatory compliance. Financial discipline and strategic decision-making to restore profitability,” he said.
