Persistent SOE Underperformance Will Trigger Leadership Changes – President Mahama Warns
President John Dramani Mahama has warned that persistent underperformance by State-Owned Enterprises will attract corrective action, including leadership changes for governing boards and chief executives.
He said boards and management of specified entities would henceforth be assessed against clear financial, operational, governance and development targets, with continued tenure tied to measurable results.
Addressing the SIGA Governing Boards and CEOs Conference in Accra on Thursday, President Mahama said performance contracts are covenants with the people of Ghana rather than routine administrative paperwork.
“Persistent underperformance will trigger corrective action, including leadership changes where necessary,” he declared.
The President said commercial SOEs could no longer treat the national budget as a permanent financial cushion, noting that every cedi transferred to inefficient enterprises reduces government’s capacity to invest in schools, hospitals, roads and social protection.
President Mahama directed the State Interests and Governance Authority (SIGA) to establish a mandatory reporting framework requiring government representatives on joint venture boards to submit written reports on financial performance, major decisions and emerging risks.
He also instructed SIGA to publish clear performance assessments, recognise excellence and promptly report persistent non-compliance to the Presidency.
The President emphasised that boards are responsible for strategy, risk oversight and financial integrity, while chief executives are accountable for delivering operational results.
“Boards govern and management manages. When boards interfere in operations or executives resist legitimate oversight, accountability is weakened and institutions suffer,” he said.
President Mahama further called for executive remuneration to increasingly reflect productivity, financial performance, service quality and fiscal sustainability, adding that chronic losses cannot justify rising salaries and allowances.
He urged all state entities to submit timely audited accounts, execute performance contracts, provide quarterly reports and hold annual stakeholder meetings, insisting that compliance with SIGA’s statutory mandate is mandatory.
The President concluded that government would recognise strong institutional performance but would not hesitate to sanction persistent failure in the national interest.
Richard Aniagyei, ISD
