Minister for Public Enterprises Joseph Cudjoe has emphasised how essential it is for a well-defined state ownership policy that delineates the state’s interest from state-owned enterprises, where a comprehensive code of corporate governance is established to provide the needed framework for accountability, transparency and ethical conduct.
It is his conviction that a distinct clarity in defining the boundaries of State Ownership and Corporate Governance is “key to the foundation issues bordering on transparency, accountability, and efficiency that are required in effective management of Specified Entities”, stressing that instance ensures “State Owned Enterprises operate in the interest of the shareholders and all stakeholders and effectively contribute to the development of the national economy as they uphold the highest standards of integrity and professionalism”.
The Minister and his ministry have, thus, led the launch of two policies that will be of critical importance to the governance and management of the portfolio of public enterprises.
The two policies are the ‘State Ownership Policy for Specified Entities and the Code of Corporate Governance for Specified Entities and Public Sector Organisations’.
These two policies are expected to define and articulate the government’s expectations relative to its ownership portfolio and provide the guiding principles and framework underpinning the management and governance of the state’s interests in specified entities.
Speaking at this year’s Policy and Governance Forum, convened under the theme: ‘Maximizing Benefits from State Ownership through Effective Corporate Governance’, where the two policies were also launched, Joseph Cudjoe explained that the two policies will establish the necessary structures and provide the direction required to “elevate performance, promote transparency, ensure accountability, and instil ethical conduct which the Specified Entities require”.
“Expectedly, this will result in enhanced operational effectiveness and ultimately bolster the nation’s economic growth, prosperity, and advancement.”
He is excited as “the launch of these two policies complete all the structures and tools that we need to put in place as a country to ensure success in effective governance and management of state enterprises” and is also confident that in the not-too-distant future, Ghana could be listed among the countries in Africa that have been able to leverage its public enterprises to advance its economic agenda.
‘Significant strides’
The launch of the two policies is also buoyed by significant milestones that the Public Enterprises Ministry has achieved since it was birthed, milestones which complement strides at achieving effective management of Public Enterprises.
For example, Mr Cudjoe revealed that the Ministry has been able to provide the necessary audited financial reports to the Parliamentary Select Committee responsible for State Enterprises to enhance their oversight of the Specified Entities.
“Hitherto, this important Committee was unable to fully discharge its function because audited financial statements which they peruse to play their oversight role in parliament were unavailable.”
Before the Nana Addo government, the financial reports accessible to officials were limited to approximately six out of the 175 entities listed on the SIGA register but presently, “we have surpassed a hundred entities in terms of reporting, account preparation, and audit compliance, leading to heightened parliamentary oversight of the Specified Entities”.
“For the first time in our nation’s history, the traditional system where the State Enterprises Commission (SEC) transferred struggling enterprises to the Divestiture Implementation Committee (DIC) for disposal has been transcended… The consolidation of SEC and DIC into SIGA signifies a departure from this old paradigm. Now, it’s imperative for SIGA to not only oversee but also continually enhance the performance of these public enterprises, fostering efficiency and profitability to bolster national development.”
He mentioned that “today, we possess vital tools for effective management of these enterprises, including public discourse avenues such as the State Ownership Report. These elements form a comprehensive framework that underscores your commitment to steering our nation’s public enterprises towards greater success and contribution to our collective progress”.