The government has been asked to act swiftly to redeem itself and the current bad image of State Owned Enterprises.
CSO, United Voices for Change (UVC), held a press conference in Kumasi under the theme: “State-Owned Enterprises at the Mercy of Looting Brigades: Heads Must Roll!” to address the losses that have beguiled SOEs which have crippled the country’s finances.
In reference to the Ghana Cocoa Board, Ghana Water Company Limited, Electricity Company of Ghana, and Ghana Airport Company Limited, the group demanded an immediate sack of the CEOs of these enterprises for what it says are colossal damages and astronomical debts incurred.
The Convener of UVC, Slyvestine Ronald, presented data to back his call for the sacking of some CEOs of SEOs.
“Cocobod, a vital player in Ghana’s agricultural sector, has been recording substantial losses over time… The losses that began in 2016 are ballooning by the years, reaching GHS 2.44 billion in 2021.
“Also, the Ghana Water Company Limited, responsible for providing safe and reliable water services to the population, has equally faced significant challenges. A company that had made a profit of GHS 101.14 million in 2016 has been turned into a loss-making machine, registering losses of GHS 692.2 million in 2017, GHS 667.9 million in 2018, and a staggering GHS 2.6 billion in losses in 2019. In 2020, the company made losses to the tune of GHS 939 million, although its revenues in that year had increased to GHS 1.3 billion from GHS 902 million in the previous year.
“Furthermore, ECG, tasked with providing electricity to the nation, has also experienced a decline in performance. The company reported a loss of GH¢1.914 billion in 2021, having made a profit of GHS 181 million in the previous year. The company also made losses of GHS 1.47 billion and GHS 2.27 billion in 2019 and 2018 respectively. This demonstrates a clear failure of leadership and a lack of accountability within the organization.
“The Ghana Airport Company is another culprit. The company has consistently made losses since 2019. From losses of GHS 231.34 million in 2019, the losses almost doubled in 2020, reaching GHS 434.77 million. In 2021, the company’s losses were a little over GHS 252 million,” the group highlighted.
Professor Aziz, a lecturer at the Kumasi Technical University (KsTU) revealed “the combined losses of these enterprises, including GNPC about 130% is one-third more of the total losses incurred in the sector so if issues with these companies are addressed we can change the performance of SOEs in Ghana”, he affirmed.
The CSO noted the role SOEs can play in a growing economy, the mass it can employ, and the infrastructure advancement they bring.
“United Voice for Change calls on the government to take swift and decisive action to address the issues of financial mismanagement within SOEs. The dismissal of the CEOs of Cocobod, ECG, GACL, and Ghana Water Company Limited is a necessary first step towards restoring accountability and ensuring the sustainable growth of this vital institution,” said Slyvestine Ronald.
