31 SOEs sign performance contracts with govt
Thirty-nine state-owned enterprises (SOEs) signed a one-year performance contract with the government in Accra yesterday, and have been charged to formulate strategies to enhance their operations and generate more revenue for the state.
Advertisement
The signing of the performance contract followed negotiations reached between the State Enterprises Commission (SEC) and the SOEs on their respective operations and projections for the year.
At the signing ceremony, held on the theme: “SOEs transformation towards operational excellence”, managers and board members of the various SOEs signed the contract documents on behalf of their respective institutions, while some ministers of state and deputy ministers initialled for the government.
There are 39 SOEs which are largely in critical sectors of the economy such as petroleum, power, water, agriculture, housing, transport, logistics, finance and infrastructure.
Challenge
In an address, a Deputy Minister of Finance, Mrs Mona Helen Quartey, said some of the SOEs were underperforming, while others were making losses.
She, therefore, challenged managers of the SOEs to adopt innovative means to propel the growth of their institutions.
She further urged them to use resources judiciously to attain financial sustainability and wean themselves off government support.
Mrs Quartey specifically asked the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL) to deliver quality and efficient services to the public, adding that the economy had some challenges which required managers of SOEs to join forces to overcome.
“Together we can work assiduously to put the economy back on track,” she said.
She mentioned GIHOC Distilleries as a success story which was achieved through the initiative of the board and the management of the company and support from the government.
The deputy minister said the government expected adequate returns from the investments it had made in the SOEs.
SEC message
The Executive Chairman of the SEC, Dr Camynta Baezie, said as of the end of 2014, the total labour force employed in 28 out of the 39 SOEs was about 32,000, generating total revenue of about GH¢14.1 billion.
He said during the same period, many of the SOEs underperformed, per their own targets, while others incurred losses.
“The effect is high economic and financial cost, resulting in inefficient service delivery, wasted resources, financial losses and accumulation of debts. SOEs account for half of all public sector arrears.”
“Some SOEs are still running like government departments, rather than as modern, autonomous and professionally run companies,” he said.
Therefore, Dr Baezie, said SOEs needed transformation to ensure improved service delivery and a more efficient use of public resources to contribute to the country’s economic growth.
Speaking with journalists later, he commended the Graphic Communications Group Ltd. (GCGL) for being an example of an SOE which was able to generate its own revenue and pay the salaries of its workers and dividend to the government.
Other speakers
A Senior Visiting Fellow at the Manchester Business School, Prof. Pikay Richardson, challenged managers to scan the environment/market, develop strategies and get people in line to implement the strategies.
He said with globalisation and increased competition, businesses that failed come up with strategies for the future would collapse.
The Minister of Roads and Highways, Alhaji Inusah Fuseini, urged managers of SOEs to put customers at the centre of their operations by delivering quality and efficient services to customers.
The Minister of State in charge of Public Sector Development, Mr Rashid Pelpuo, who chaired the function, said like the private sector, SOEs could make profit.