The Director-General of the State Interest and Governance Authority (SIGA), Professor Michael Kpessa-Whyte, has advised Chief Executive Officers and Governing Boards of State-Owned Enterprises (SOEs) to exercise prudence in the spending of public funds, stressing that such resources must be used strictly to deliver value to citizens.
He cautioned that public funds were not meant for excessive conferences or avoidable expenditures, but rather to maintain critical assets, improve service delivery, and expand productive capacity. He further warned against wasteful procurement practices and decisions that may appear beneficial in the short term but carry long-term financial risks for the state.
Speaking on the theme, ‘The State as a Partner in Progress: Leveraging Public Assets for Shared Prosperity’, the Director-General underscored the need for a renewed mindset in managing state assets. He explained that public ownership must translate into measurable public value, with SOEs operating competitively, innovating consistently, and delivering efficient services.
He further stressed that the state must act as a disciplined and active shareholder, ensuring that public enterprises contribute meaningfully to national development and shared economic growth.
Delivering an address at a stakeholders’ forum, the Director-General emphasised that sound financial discipline and strong corporate governance remained essential pillars for restoring public trust and ensuring the sustainability of public enterprises. He noted that governance was not merely a procedural requirement but a critical safeguard for public assets.
According to him, weak internal controls and conflicts of interest continued to undermine institutional credibility and performance, urging boards and management to treat governance structures as indispensable tools rather than administrative burdens.
The Director-General called for strict adherence to reporting timelines, particularly the submission of unaudited financial statements by April 30, explaining that delays weakened oversight and exposed public resources to risk. He indicated that such reports formed the foundation for SIGA’s State Ownership Reports, which assessed the performance and value of public enterprises.
He acknowledged improvements in compliance and operational performance among SOEs, noting increased submission of financial reports and a steady recovery in profitability across key sectors. Despite these gains, he expressed concern about persistent financial challenges in some entities, especially within the utilities sector, where debt burdens and operational inefficiencies continued to affect performance. He stressed that restructuring efforts and reforms could no longer be delayed.
The Precious Minerals Marketing Company (GOLDBOD) emerged as the overall best-specified entity and also swept multiple awards, including SOE of the Year and Most Profitable SOE, as part of the Public Enterprises League Table (PELT), which recognises outstanding performance among specified entities. Other winners included Consolidated Bank Ghana for innovation, TDC Ghana Limited for compliance, and the Environmental Protection Agency as the top-performing Other State Entity.
BY KINGSLEY ASARE
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