Professor Albert Puni, a management scholar at the University of Professional Studies, Accra (UPSA), has called for a merit-driven and transparent process for appointing Board members and Chief Executive Officers (CEOs) of State-Owned Enterprises (SOEs) to boost their efficiency and financial performance.
Delivering his inaugural lecture at UPSA, Prof. Puni urged the State Interests and Governance Authority (SIGA) to develop a vetted pool of qualified directors and executives, assessed on their character, competence, and commitment to national service, from which appointments could be made.
He proposed that shortlisted candidates from this pool be recommended to the President for approval, stressing that such a structured approach would reduce political interference and enhance professionalism in SOE leadership.
“The current appointment regime for SOEs is hurriedly done and deeply flawed,” he stated. “Most appointments are based on political affiliation rather than merit, which explains the persistent underperformance and financial losses of state enterprises.”
Prof. Puni emphasized that political loyalty has often overshadowed integrity and competence in leadership selection. “Commitment to party tends to take precedence over character and capability. But character determines how one applies competence, it is the foundation for ethical and effective leadership,” he said.
He cited Sections 14 and 15 of the Presidential (Transition) Act, 2012 (Act 845), which grants the President authority to appoint boards and CEOs of SOEs.
However, he argued that the political nature of these appointments has led to instability, with most executives and boards being replaced after each change in government.
Referencing a 2019 Supreme Court ruling, Prof. Puni noted that while boards of SOEs may be dissolved with a new administration, CEOs cannot be removed merely due to political transitions but only for just cause or as outlined in their contracts. He lamented that this legal safeguard has been routinely ignored.
“The ineffective implementation of this law has weakened SOE governance structures, creating conflicts between Boards and CEOs, encouraging political patronage, and undermining accountability,” he observed.
Prof. Puni recommended that Boards should have a direct role in appointing CEOs to ensure that management remains accountable to them rather than to political appointers.
“We must depoliticise the selection and appointment process and adopt a merit-based system that evaluates candidates by character, competence, and commitment to national development,” he said.
He further argued that Ghana’s SOEs could become profitable and competitive if leadership appointments were guided by governance best practices and performance-driven standards rather than political convenience.
“The call for reform is not just about filling positions; it is about safeguarding the nation’s economic assets and ensuring that our public enterprises deliver real value to Ghanaians,” he said.
