Submit financial statements or face the law-Finance Ministry to 47 SOEs

The Minister of Finance, Ken Ofori Atta has directed 47 State Own Enterprises to submit their annual financial statements to the Ministry or face the full rigors of the law.

According to Mr.Ofori Atta, the institutions have contravened the Financial Management Act by refusing to submit their annual financial statements to his outfit.

He further revealed that only 14 out of the 126 SOEs in the country have so far responded to the ministry’s directive in that regard.

This was disclosed by Mr.Ken Ofori Atta when he made an address on July 26, 2021, at a performance signing contract by Chief Executive Officers of SOEs in the country.

The above development, according to the Finance Minister is unacceptable and does not promote good governance thus highlights the need for a renewed performance contract.

Generally, the operating expenses at state enterprises are rising compared to the revenue inflows and do not signal a good sign.

An aggregate net loss of ¢586.4 million was recorded in SOEs at the end of 2019 whereas a loss position of ¢188 million was recorded in 2018.

To recover from the impact of the coronavirus pandemic as a country, the Finance Minister stressed that state Enterprises ought to pursue aggressive accountability, transparency, and responsive custodianship.

The performance contract which is an initiative of the State Interest and Governance Authority (SIGA), aims to evaluate and assess the performance of the CEOs.

In reacting to the Finance Minister’s revelation, the Executive director of SIGA, Stephen Asamoah Boateng indicated to the press that he will recommend non-performing officers of SOEs for dismissal.

He further stated that his outfit will exert pressure on SOEs to submit their financial statements to the Ministry of Finance and will be made to face sanctions if they fail to do so.