President John Dramani Mahama has issued a strong warning that loss-making State-Owned Enterprises (SOEs) will either be merged, privatized, or shut down if they fail to improve their performance.
Speaking at a meeting with Chief Executive Officers (CEOs) of state-run enterprises, the president emphasized the urgent need for these institutions to become more efficient and financially sustainable to prevent further strain on the national economy.
President Mahama expressed deep concern over the continuous financial burden caused by unprofitable SOEs, stating that the government can no longer afford to sustain entities that fail to deliver value.
He underscored the importance of strategic reforms to align these institutions with the country’s broader economic objectives.
“Negotiate and enforce performance contracts with heads of entities. Two, conduct regular in-depth assessment of SOE finances ensuring transparency and exposing mismanagement. Three, issue binding directives, implement compliance mechanisms and intervene directly in under-performing entities.
“Four, commission independent audits to identify inefficiencies and financial leakages. Five, set a monitor performance metrics with tangible consequences for non-performance.
“Loss making SOEs will no longer be tolerated. They will be swiftly reformed, they will be merged, privatised or shut down,” he stated.
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