Former Minister for Public Enterprises, Joseph Cudjoe, has strongly refuted claims by the Finance Minister, Dr. Cassiel Ato Forson, that most State-Owned Enterprises (SOEs) are struggling financially.
In a statement responding to Dr. Forson, Cudjoe described the claim as misleading, emphasizing that “39 out of 53 SOEs reported profits in 2023 per their audited accounts, while five others improved their performance by reducing losses.” He questioned why the Finance Minister would assert that “most SOEs were in red” when data suggests otherwise.
Cudjoe further argued that under previous administrations, many SOEs did not even prepare financial statements, making it difficult to assess their performance. “During their time, most of these SOEs were not even preparing accounts at all,” he stated.
Clarifying the Structure of Public Enterprises
Providing a breakdown of Ghana’s public enterprises, Cudjoe explained that the country has 175 such entities, categorized into three groups. “There are 53 SOEs, which are commercial entities expected to generate profit, 75 Other State Entities (OSEs), which function as regulators like the Food and Drugs Authority (FDA), the Petroleum Commission, National Petroleum Authority (NPA), GPHA, DVLA, and GRA, among others. These 75 OSEs are distinct from the 53 SOEs,” he elaborated.
The final category, he noted, includes 47 Joint Venture Companies (JVCs), which are commercial investments co-owned by the government and private investors. He cited GOIL, GCB Bank, SIC Insurance, Newmont, and Goldfields as examples, asserting that “this category is largely profitable.”
Monitoring Public Enterprises for Improved Performance
Cudjoe credited the Akufo-Addo administration for improving oversight of these public entities through the establishment of the State Interests and Governance Authority (SIGA). “SIGA has been responsible for bringing all these 175 public investments into sharp focus so that their performances can be constantly monitored,” he said.
According to him, the introduction of the Public Enterprises League Table (PELT) has further enhanced accountability by ranking the performance of these entities. “Today, we have data to use to manage these enterprises, and their performances are being tracked more efficiently,” he added.
Efforts to Revive Struggling SOEs
While acknowledging that some SOEs continue to face financial difficulties, Cudjoe maintained that efforts are underway to restore them to profitability. “There is an ongoing program to bring the troublesome SOEs to profitability. These troublesome ones include TOR, COCOBOD, ECG, Ghana Water, PBC, etc.,” he noted.
He, however, accused the Finance Minister of exaggerating the extent of financial distress among SOEs. “The current Finance Minister should stop peddling lies that ‘most’ are in red because it’s rather few that are in red,” he asserted. “Most rather prepared accounts, got them audited, and reported profits in 2023.”
Cudjoe also took a swipe at the previous administration, alleging that before 2017, several SOEs, including BOST and Ghana Publishing Company Limited, failed to prepare financial statements. “There has been constant performance improvement in these public enterprises since 2017, as opposed to the period before 2017 when companies like BOST— notorious for contaminated fuel during the NDC’s time— were not even preparing accounts at all,” he claimed.
Call for Accuracy in Government Communications
Ending his statement, Cudjoe urged the Finance Minister to be more factual in his assessments. “Ghana’s public enterprises have made significant strides in financial accountability and performance tracking. The Minister should acknowledge this progress instead of making misleading statements,” he said.
The debate over the financial health of SOEs continues to generate controversy, with stakeholders closely monitoring government policies aimed at strengthening public sector enterprises.
