Finance Ministry orders SIGA to sanction firms who do not submit accounts
President Akufo-Addo charges SOEs to operate profitability
About 50% SOEs reported losses in their operations in 2020 – Finance Ministry
Deputy Finance Minister, John Kumah, has disclosed that about 50% of State-Owned Enterprises (SOEs) recorded GH¢5.3 billion in losses in their operations in the 2020 fiscal year, Joy News reported.
According to the Minister some of the state-owned companies have been reluctant in submitting annual accounts since 2017.
The Finance Ministry however says it will no longer support requests for assistance by firms that fail to meet the reporting requirements specified in the Public Financial Act.
The Minister made these revelations at a forum held by the State Interest and Governance Authority (SIGA) in Accra on Friday, January 28, 2022.
“SOEs consistently posted aggregate net losses from 2015; an amount of ¢2.1 billion to the latest figure of 2020 which is ¢5.3 billion losses in the Draft 2020 SOE Report. 50% of SOEs and 63% of JVCs reported losses.”
“The Finance Ministry will not consider any request for government support from any specified entities that fail to meet the reporting requirements specified in the PFM Act.
“The Minister of Finance has directed to the Director-General of SIGA to ensure that appropriate sanctions and penalties are applied for infractions of the PFM Act,” he stated.
President Akufo-Addo however lamented the losses being made by the state-owned enterprises and urged them to operate profitably and create employment opportunities for young people.
“We must bring the phenomenon of posting losses to an end. Beginning this year, I urge every specified entity to direct their chain activities to involve Ghanaian entrepreneurs to spur the growth of the micro, small and medium scale enterprises sector in order for more young people to be employed.”
“If we can do this continuously for five years, imagine the number of lives we’d be impacting! When we gather again in the coming years, I will be eager to listen to success stories in this area,” he said.