SOEs losses reduced by GH¢9 million in 2023 - SIGA

The State Interest and Governance Authority (SIGA) says it has reduced losses made by State Owned Enterprises (SOEs) by GH¢9 million for the 2023 financial year.

The amount represents an 83.13 percent reduction from a previous net loss of GH¢14,402,000.00 in 2022 to GH¢2,573,000.00 in 2023.

Speaking at the launch of the 2023 State Ownership Report in Accra, John Boadu, the Director General of SIGA, said it was also worth noting that the Auditor General reported a 46 percent reduction in irregularities and infractions in the Specified Entities (SE) space in the 2023 Audited Accounts of Public Boards, Corporations and Other Statutory Institutions.

He said while some losses had been recorded in the 2023 fiscal year, all was not lost as 90 percent of those losses were recoverable.

He said the Authority was deploying some reforms and interventions to achieve a net transfer from the SOEs to the government, and also ensure that the government’s investments amounting to about GH¢800 billion in the hands of Specified Entities (SE) were protected and made profitable.

He said while some SOEs were not necessarily set up to make profits, they must remain relevant and ensure that the losses they made were viable.

According to him, there were areas that their revenues could not meet and that some of the losses were due to investments that would take long to recover.

“For instance, if the Electricity Company of Ghana (ECG) should invest about GH¢5 million into a non-commercial area, it would take a very long time to recoup,” he intimidated.

Explaining the data used in preparing the report, John Boadu indicated that the report was prepared with 60 Audited Financial Statements and 87 Management Accounts of the SOEs.

He said the report, which had been prepared in compliance with the indicators in the World Bank-sponsored Public Financial Management for Service Delivery (PFM4SD) Programme, with the aim of supporting the implementation of the Government’s Public Financial Management Reform Strategy, also sought to strengthen the oversight, performance management and fiscal discipline of the SOEs.

Themed “Inclusive Growth and Value Addition: The Role of Specified Entities,” the 2023 SOR, underscores SIGA’s pledge to align the SOEs with the government’s 2023 agenda to restore and sustain macroeconomic stability through inclusive growth and value addition under the Post-COVID-19 Programme for Economic Growth (PC-PEG).

Boadu noted that the theme captures the essence of SIGA’s mission to harness the potential of SOEs to contribute meaningfully to Ghana’s economic recovery and growth.

“The Report reflects the Government’s commitment to transparency and accountability in the public financial management of our country,” he said.

Included in the report are dedicated chapters on transactions with the government, fiscal risk exposures, climate-smart initiatives and investments, as well as gender representation, particularly at Management and Board levels.

The 2023 report covers 147 (84%) out of the 175 Entities listed in the Cabinet approved SIGA Entity List.

The 147 Entities comprise 53 State-Owned Enterprises (SOES), 31 Joint Venture Companies (JVCs), and 63 Other State Entities (OSEs).