Govt to reposition SOEs to be more profitable – Minister for Public Enterprises

The Minister for Public Enterprises, Mr. Joseph Cudjoe, has reiterated the government’s commitment to repositioning State Enterprises to be more efficient and profitable.

He made the remark during a press briefing held on Wednesday at Ministry of Information press center in Accra.

He stated, “The Public Enterprises secretariat has a mandate to support the Ministry for Public Enterprises to ensure effective oversight of SIGA and deliver profitable, efficient and effective outcomes for the State-Owned Enterprises (SOESs), Joint Venture Companies (JVCs) and other State Entities (OSEs) collectively referred to as Specified Entities (SEs).”

He noted that there are 175 Specified Entities operating in various sectors of the economy comprising 53 State Owned Enterprises, 47 Joint Venture Companies 75 Other State Entities.

As at 2016, he said, only six public accounts had signed its performance contracts and it has now immensely improved. The signed performance contracts for Entities in 2023 are 73.

According to Mr. Cudjoe, a study undertaken by the government and completed in 2019 estimated the market value of the State’s equity holding in 63 active entities at GHS 35.7billion as at December 2016.

“SOEs accounted for 92 percent of this value. The remaining eight percent represented the State’s equity stake in JVCs,” he added.

He noted that there are 17 defunct government entities in the county. These include the Aboso Glass Factory’s Central Stores, Bolgatanga Meat Factory (Bungalow), the Bonsa Tyre Factory Clinic and the Ghana Consolidated Diamonds Company (Research Laboratory).

On capacity building of SOEs, Mr. Cudjoe said a capacity building workshops for Boards of Specified Entities was held in March 2022.

“This workshop developed their skills and capacities in four key areas which include; Corporate Governance and the Board, Financial Stewardship and Accountability, Legal and Regulatory Framework for Specified Entities, Public Procurement for Specified Entities.

“A separate training was also organized on Corporate Governance for Board Secretaries. This training was to enable them provide support to their Boards and strengthen their understanding of their duties,” he added.

According to him, a maiden edition of the Public Enterprises League Table (PELT) was published last year, adding that the PELTisaranking tool for assessment of performance of Specified Entities.

“It is based on performance indicators provided in the performance contract signed between SIGA and the Entities. The PELT is expected to engender a healthy competition among the entities for improved performance and to recognize the best performing entities,” he noted.

Patience Anaadem, ISD