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 83.13% reduction from a previous net loss of GH¢14,402,000.00 in 2022 to GH¢2,573,000.00 in 2023.
Mr John Boadu, the Director General of SIGA, said it was also worth noting that the Auditor General reported a 46% 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% of those losses were recoverable.
He said the Authority was deploying some reforms and interventions to achieve a net transfer from the SOEs to government, and also ensure that 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 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 five million cedis into a non-commercial area, it would take a very long time to recoup,” he said. Explaining the data used in preparing the report, Mr 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.
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).
