The Ministry of Public Enterprises has served notice that it will privatize non-performing state agencies if they fail to turn the tide.
The decision follows a 2020 State Ownership Report released by the Finance Ministry which recorded a GH₵5.3 billion loss by State-Owned Enterprises (SOEs).
The 2020 figure represents nearly 50 percent improvement on the 2019 aggregate net loss.
Minister for State Enterprises, Joseph Cudjoe told Host of JoyNews’ The Pulse, Blessed Sogah on Monday, that “some SOEs will be privatized, some will be sold off”.
He added “there are defunct enterprises sitting on assets and government is using taxpayers’ money, paying some security people and people are demolishing the assets and selling. Something like that, you don’t hold”.
The Minister who doubles as a Member of Parliament for Effia Constituency, further explained that government cannot continue to use the taxpayers’ money on “defunct” SOEs.
“When you have a company just defunct you have to pay security every month to take care of it. You don’t have money to pay because they run it down. You don’t have money to pay for it to operate. What will you do? the private man will sell before it reaches even that stage. Do you understand? But sometimes because of sentiments, we hold on to it and keep using your tax, income tax when you check your payslip, your tax, and then they go and pay for that defunct thing in the bush. And you see it run down, down and down because of sentiment. Sentiment doesn’t come in, if you want it, you exact performance from people taking care of your investments,” he added.
Meanwhile, the Finance Ministry will this year apply sanctions to State-Owned Enterprises that fail to meet demands and obligations in the Public Financial Management law.
Among the sanctions considered include; refusal of financial support to entities that fail to meet the reporting time and others.
Deputy Finance Minister, Dr. John Kumah described the development as unacceptable and hinted at sanctions to turn the fortunes of the enterprises around.
“It is regrettable that while our specified entities, especially the SOEs hold significant assets, their performance and effectiveness leaves much to be desired. Henceforth, the Finance Ministry will not consider any government request for government support from any specified entities that fail to meet the reporting requirements specified in the PMF regulations, SIGA etc.
“Secondly, in consultation with the Minister for Public Enterprise, the Finance Minister has directed the Director-General of SIGA to ensure that appropriate sanctions and penalties are applied for infractions of the PMF regulations and SIGA Act,” he said.
