State-owned enterprises Audit is a Crucial Step — Corporate governance expert, Mr. Kwaku Anane Gyinde has commended President John Dramani Mahama for instructing the State Interests and Governance Authority (SIGA) to conduct independent audits of state-owned enterprises (SOEs) to assess their efficiency and financial viability.
The directive comes after growing concerns over the financial mismanagement and inefficiency of many SOEs, which continued to record losses despite receiving significant government funding.
Mr. Gyinde believes that these audits could provide the much-needed transparency and accountability in the management of state resources.
Mr. Gyinde emphasized the importance of insulating State-owned enterprises governance from political influence, advocating for a competitive, merit-based selection process for board members.
He noted that under Article 70 of the Constitution, SOE board appointments are predominantly political, often at the expense of competence and expertise.
“If you appoint individuals based on political loyalty rather than their ability to manage these entities, inefficiency is inevitable,” he stated.
He also criticized the frequent changes in SOE leadership, arguing that it disrupts long-term strategic planning.
“Strategic business decisions take years to yield results, yet in Ghana, board members are replaced every four years. How can we expect these enterprises to operate efficiently?” he questioned.
The call for independent audits and a merit-based governance structure has been lauded by various stakeholders who believe Ghana’s SOEs can become more productive if managed with professionalism rather than political considerations.
