Government to divest 17 SOEs
Government, is said to be planning to divest its interests in 17 state-owned enterprises [SOEs].
The move, according to the Minister for Public Enterprises, Joseph Cudjoe, is to save the state from spending on the 17 SOEs.
Speaking to the press at the Osu Castle, Mr Cudjoe averred the 17 SOEs are defunct entities that the country keeps spending on, and it will be prudent they are let off government’s expenditure.
“These are defunct assets that you would want to get rid of them so that you don’t continue to spend on them,” he said.
However adding that, some of the companies are however being considered by various ministries for government’s flagship projects.
“I have seen for example, the Trade Minister talk about interest in some of them for One District One Factory, which is very good because the aim is that they are defunct, assets are lying idle,” he remarked.
He added that the Agriculture Minister has expressed interest in using some of the companies listed for such disposal for the Planting for Food and Jobs programme.
SOEs record GHS 5.3 bn losses in 2020
About 50% of State-Owned Enterprises (SOEs) recorded GH¢5.3 billion in losses in their operations in the 2020 fiscal year.
According to the Deputy Minister for Finance, some of the state-owned companies have been reluctant in submitting annual accounts since 2017.
“SOEs consistently posted aggregate net losses from 2015; an amount of ¢2.1 billion to the latest figure of 2020 which is ¢5.3 billion losses in the Draft 2020 SOE Report. 50% of SOEs and 63% of JVCs reported losses.”
“The Finance Ministry will not consider any request for government support from any specified entities that fail to meet the reporting requirements specified in the PFM Act.
“The Minister of Finance has directed to the Director-General of SIGA to ensure that appropriate sanctions and penalties are applied for infractions of the PFM Act,” he stated at a forum held by the State Interest and Governance Authority (SIGA) on Friday, January 28, 2022.
Speaking at the forum, President Akufo-Addo lamented the losses being made by the state-owned enterprises and urged them to operate profitably and create employment opportunities for young people.
“We must bring the phenomenon of posting losses to an end. Beginning this year, I urge every specified entity to direct their chain activities to involve Ghanaian entrepreneurs to spur the growth of the micro, small and medium scale enterprises sector in order for more young people to be employed.”
“If we can do this continuously for five years, imagine the number of lives we’d be impacting! When we gather again in the coming years, I will be eager to listen to success stories in this area,” he said.
