President John Dramani Mahama has warned that the government will no longer quietly absorb persistent state owned enterprise losses, placing boards and management teams under pressure to deliver measurable financial and public value.
Speaking at a conference organised by the State Interests and Governance Authority at the La Palm Royal Beach Hotel, President Mahama said the government had reset its relationship with public enterprises.
“Persistent losses will no longer be quietly absorbed into the national budget,” he said.
The warning signals a tougher approach to entities that repeatedly rely on the government to cover operating shortfalls, repay liabilities or support their continued existence.
SOE leaders to face performance test
President Mahama said appointments to the boards and management of state enterprises must come with responsibility for performance, value creation and profitability.
Public entities cannot simply point to their legal mandates or the importance of their services when their finances continue to deteriorate, he suggested. Their leaders must show what has improved under their watch.
The President asked institutions attending the conference to provide credible evidence of the value they had created for Ghanaians.
The expectation will not be limited to profit. Commercial entities must demonstrate financial sustainability, while organisations delivering essential public services will need to show clear social and economic results.
Public assets belong to Ghanaians
President Mahama reminded boards and chief executives that the assets under their control were not institutional possessions.
He cited ports, power infrastructure, factories, water systems, pension funds, land, buildings, equipment and government owned shares as assets held in trust for citizens.
“These assets do not belong to any government, a board, or a chief executive,” he said. “They belong to the people of Ghana, and you and I hold them only in trust for the people.”
Mahama said public ownership must produce public value. That principle now leaves SOE leaders with a direct question: what have Ghanaian taxpayers gained from the assets placed in their hands?
The government’s harder task will be enforcing the warning. Without consequences for repeated losses and missed targets, the national budget could remain the rescue plan public enterprises expect.
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