Business News of 2026-09-13
Public money is not for personal comfort – President Mahama warns SOE bosses
President John Dramani Mahama has cautioned managers and boards of State-Owned Enterprises (SOEs) against using public money to fund expensive benefits and personal comforts while taxpayers bear the cost.
Speaking at the 2026 Governing Boards and CEOs Conference organised by the State Interests and Governance Authority (SIGA), President Mahama said profits made by state companies belong to Ghanaians and must be used in the public interest.
“You must not use profits that rightly belong to the Ghanaian people to finance the creature comforts of management and boards,” he said.
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He stated that profitable SOEs must pay the dividends they owe the government instead of retaining the money without a clear purpose. According to him, money retained by state companies must be supported by credible investment plans that can strengthen their operations and create long-term value.
The President noted that the financial position of SOEs improved significantly in 2025, with their combined performance moving from a net loss of GH¢2.26 billion in 2024 to a net profit of GH¢19.8 billion in 2025.
Their total revenue also increased from GH¢137.71 billion to GH¢176.43 billion.
However, he cautioned against celebrating the figures too quickly. He explained that about GH¢11.72 billion in foreign exchange gains and a 42.5% fall in finance costs contributed to the improvement, meaning the better results were not entirely due to stronger operational performance.
President Mahama therefore challenged SOEs to turn the financial relief into lasting improvements in productivity and efficiency.
“A one-year turnaround is encouraging, but sustained performance is the real test,” he said.
He also warned that SOE leaders who consistently fail to deliver could lose their positions. Boards and management teams, he said, would be assessed based on clear financial, operational, governance and development targets.
The President further questioned the practice of increasing salaries and allowances at state companies that continue to make losses. He said executive pay should reflect performance, arguing that poor results should not continue to attract higher rewards.
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He pointed to improvements at some state companies, including the Tema Oil Refinery, which moved from a loss of about GH¢745 million to a GH¢1.09 billion profit. The Ghana Water Company also moved from a GH¢3.06 billion loss to a profit of about GH¢635 million, while COCOBOD turned a GH¢5.73 billion loss into a GH¢5.11 billion profit.
President Mahama reminded SOE boards and managers that state companies and their assets do not belong to political parties, governments or individual executives.
DR/MA
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