The Director-General of the State Interests and Governance Authority (SIGA), Michael Kpessa-Whyte, has issued a strong warning to state-owned enterprises (SOEs) against paying bonuses while recording financial losses, describing the practice as a clear breach of established directives.
Speaking on the sidelines of the 2026 SIGA Stakeholders’ Conference in Accra, Prof. Kpessa-Whyte stressed that the Authority maintains strict oversight of SOE financial activities, making it difficult for such irregularities to go unnoticed.
“We know where all monies go by way of expenditure.
"We know their revenue lines, we know their expenditure lines. You can’t make losses and pay bonuses.” - Michael Kpessa-Whyte
Financial Discipline and Accountability
The SIGA Director-General described the payment of bonuses by loss-making institutions as inconsistent with basic business principles.
According to him, no private enterprise would reward itself under similar circumstances, making the practice unacceptable in the public sector.
He explained that when an SOE fails to declare profits at the end of a financial year but still records bonus payments, it signals a disregard for financial governance rules.
“If at the end of the year… you are unable to declare profits, and we see a line that shows that you have paid bonuses… then it means that you have flouted a directive.” - Michael Kpessa-Whyte
Bonuses Must Reflect Performance
Prof. Kpessa-Whyte clarified that SIGA is not opposed to bonuses in principle but insists that such incentives must be tied strictly to performance benchmarks.
“Bonuses traditionally are rewards for good work done.
"If your books are showing that you have not done very well, then it is just honourable… to know that you can’t pay bonuses.” - Michael Kpessa-Whyte
He noted that only SOEs that meet or exceed agreed financial and operational targets outlined in their performance contracts are eligible for such rewards. Institutions that fall short, he added, are not entitled to bonuses.
The SIGA boss also expressed support for recent directives from the Ministry of Finance calling for an immediate halt to unauthorised board allowances and improper bonus payments.
He stressed that enforcing these measures is critical to strengthening accountability and protecting the public purse, adding that stricter compliance will enhance SIGA’s oversight role.
Renewed Push for SOE Reforms
The warning comes amid growing public concern over financial irregularities within Ghana’s state-owned enterprise sector, following audit reports that revealed significant losses and governance lapses.
By linking incentives to performance and eliminating bonuses for underperforming institutions, SIGA aims to instil private-sector discipline across SOEs.
The Authority believes this approach will improve efficiency, enhance transparency, and ensure that public resources are used responsibly.
As the reform agenda gains momentum, SIGA’s latest directive signals a tougher stance on financial mismanagement, with expectations that SOEs align their operations with sound business practices and national development priorities.
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