President John Mahama has issued a strong ultimatum to state-owned enterprises (SOEs), warning that underperformance will no longer be tolerated. Speaking at a meeting with SOE CEOs organized by the State Interests and Governance Authority (SIGA) on March 13, 2025, Mahama emphasized that his government will take strict action against loss-making entities.
“Loss-making SOEs will no longer be tolerated,” he declared. “They will be swiftly reformed, merged, privatized, or shut down. Corruption, procurement fraud, and financial mismanagement will be prosecuted strictly, and boards that rubber-stamp poor decisions will be replaced.” Mahama further stressed that SOEs must play a key role in Ghana’s industrialization and 24-hour economy agenda, particularly in the energy, transport, manufacturing, agriculture, and finance sectors.
The President’s directive follows years of financial mismanagement, procurement fraud, and inefficiencies among SOEs. He announced that SIGA will be strengthened to take a more active role in enforcing accountability and ensuring that SOEs contribute meaningfully to national development.
Key Measures to Revamp SOEs
To ensure improved performance, President Mahama outlined several measures, with SIGA playing a central role:
- SIGA will act as a command center with executive authority to negotiate and enforce performance contracts with SOE heads.
- Conduct regular in-depth assessments of SOE finances to ensure transparency and expose mismanagement.
- Issue binding directives and implement compliance mechanisms, intervening directly in underperforming entities.
- Commission independent audits to identify inefficiencies and financial leakages.
- Set and monitor performance metrics, with tangible consequences for non-performance.
Mahama made it clear that the era of inefficiencies in SOEs is over, stating that accountability and performance will be strictly enforced to safeguard public funds and drive national progress.
