Submit all management accounts by February 28 – President directs SOEs

President Nana Addo Dankwa Akufo-Addo has directed all Specified Entities to submit all their management accounts to the Controller and Accountant General’s Department by February 28, 2023.

He expressed concern that as of the first quarter of 2022, only 54 per cent of State-owned Enterprises (SOEs) submitted their financial statements for consolidation into the national accounts.

The President gave the directive when he addressed participants at the Annual Stakeholder Meeting of the State Interests and Governance Authority (SIGA) at Kwahu-Nkwatia in the Eastern Region on Friday.

He noted that the late and non-submission of financial statements by SOEs undermined the work of the Controller and Accountant General in providing a total picture of Ghana’s public finances.

“I wish to reiterate strongly that by 28 February this year, all management accounts should be submitted to the Controller and Accountant General’s Department.

“The more we consolidate the national accounts with additional SOEs, the wider the national assets and fiscal space become” the President said.

President Akufo-Addo also directed all SOEs to submit to SIGA’s performance contract process to facilitate the inclusion of their financial statements in the preparation of the national accounts.

Currently, SIGA has 175 Specified Entities under its supervision.

These entities are mandated by law to submit management accounts by 28th February to allow the Auditor General to submit audited accounts to Parliament by April 30.

The number of financial statements submitted by SOEs in the consolidated national accounts rose from 19 in 2020 to 47 in 2021.

In 2020, the 19 SOEs included in the national accounts contributed 30 per cent to the national assets. It further increased to 49 per cent when 47 SOEs were included in the 2021 national accounts.

President Akufo-Addo charged Chairpersons of Boards and Chief Executive Officers of SOEs to collaborate with their respective internal auditors in the preparation of their management accounts to reduce incidents of infractions in the ongoing 2022 audit process.

He said it was unacceptable for SOEs to control about half of the country’s national assets and contribute less to the nation’s Gross Domestic Product (GDP).

SOEs, President Akufo-Addo insisted, must own up to their responsibilities and take a centre stage in the country’s development.

“Jumpstarting our economy begins with you. You should be the major drivers of Ghana’s economy rather than being a financial burden,” he said, adding: “excuses for non-performance should no longer be tolerated.

The 2023 Stakeholder Meeting of SIGA brought together Board Chairs, CEOs of Specified Entities, and other relevant stakeholders to discuss strategic initiatives aimed at transforming the Specified Entities into high-performing organisations and ensuring they meet the President’s vision of contributing 30 per cent to Ghana’s Gross Domestic Product.

The two-day Conference, which was in accordance with Section 30 of the SIGA Act 2019 (Act 990), was on the theme: “A Time to Reflect and Rebuild”