SOEs profits must translate into public value – SIGA Director-General

Professor Michael Kpessa-Whyte, the Director-General of the State Interests and Governance Authority (SIGA), has called on State-Owned Enterprises (SOEs) to ensure that recent gains in profitability are translated into public value through dividend payments, stronger governance and improved accountability.

State enterprises, joint venture companies and other specified entities are custodians of public assets and must manage them in the interest of the Ghanaian people, he said.

Prof Kpessa-Whyte was speaking at the 2026 Governing Boards and CEOs Conference in Accra on Wednesday, which brought together chief executive officers and boards of directors to reflect on the 2025 financial year.

His remarks come on the back of a strong financial performance by SOEs in 2025.

According to the 2025 State Ownership Report, the sector recorded a net profit after tax of GH¢19 billion, compared to previous years marked by economic challenges and losses in some key sectors.

The report showed that 34 out of the 53 SOEs assessed reported profits, while total revenue increased to GH¢176.4 billion, representing a 28.2 per cent rise over the previous year.

Prof Kpessa-Whyte said the improved performance was not only the result of favourable economic conditions but also reflected the impact of sound governance and effective management.

“The results reflect more than favourable external conditions. They show what can happen when boards stay close to the fundamentals, when management controls costs and receivables, and when performance contracts guide decisions throughout the year,” he said.

He cited the turnaround of several state enterprises as evidence that good governance delivers results.

The report showed that the infrastructure sub-sector recorded its first sector-wide operating profit in five years, while the Ghana Gold Board contributed a net profit of GH¢896.52 million in its first year of operation.

The Director-General noted that 10 SOEs, led by the Ghana National Petroleum Corporation and the Ghana Ports and Harbours Authority, had remained profitable for five consecutive years.

He said the performance demonstrated that sustained profitability was possible when institutions were governed properly.

“What this tells us is that consistency is possible when institutions are governed well,” he said.

Despite the improved profits, Prof Kpessa-Whyte said the ultimate test of performance was the extent to which returns reached the shareholder and benefited the public.

“A profit that never reaches the shareholder has not yet become public value,” he said.

He noted that only two SOEs, Ghana Reinsurance Company and Tema Development Company (TDC), paid dividends to the government in respect of their 2024 operations.

The SIGA Director-General, however, commended BOST Energies for already declaring and paying dividends from its 2025 operations.

Prof Kpessa-Whyte also raised concerns about low compliance levels among some specified entities.

He said only 72 entities signed performance contracts in 2025, while 71 submitted quarterly reports on time.

In addition, only 37 entities held annual general meetings or stakeholder meetings.

He said boards and chief executives had a responsibility to improve compliance and accountability across the sector, adding: “Boards and chief executives shape performance through the quality of their decisions, the accuracy of information they demand, and the speed with which they address risks.”

Prof Kpessa-Whyte expressed optimism that future State Ownership Reports would show not only stronger profits but also improvements in governance, compliance and public value creation across all specified entities.