Ghanaian SOEs Lack Corporate Governance Policy

Otchere-Darko interacting with a dignitary at the forum

AMONG THE 38 state-owned enterprises (SOEs) in the country, only one is known to have a corporate governance policy that entails codes of practices designed to establish a basis for good corporate governance aimed at achieving its core objectives.

The situation was highlighted at the second day of the 2019 Policy and Governance Forum when a Senior Partner of Africa Legal Associates, Gabby Asare Otchere-Darko, requested in his address that SOEs with corporate governance policy should raise their hands for the audience to note.

“You will be surprised that most SOEs, some of which you are managers and directors of, don’t have corporate governance policy. If yours has one, please raise your hand,” he commanded.

Surprisingly, it was the Managing Director of Tema Development Company (TDC) Limited, Alice Abena Ofori-Atta, who raised her hand to the amazement of audience at the forum which was attended by Ministers of State, representatives of civil society organisations and top managers of SOEs in the country.

Mr. Otchere-Darko, who was speaking on the topic, “SOE’s, Joint Venture Companies (JVC) and Other State Entities (OSEs) as drivers of ‘Ghana Beyond Aid’ Agenda”, proposed that the State Interests and Governance Authority (SIGA) should constitute a corporate governance committee to ensure the development and implementation of the policy.

“A proper management of these processes will enhance the quality of strategic leadership required to enable SOEs, JVCs and OSEs to operate at their optimum,” he indicated.

In the absence of the policy, he advised that “ministers must give broad policy directions but must not interfere on how SOEs are run. Board chairmen who are not executive directors must not deal directly with members of staff, and must also not act without a direct decision of the board.”

He indicated that the realisation of the Ghana Beyond Aid agenda focuses on change of values, mindset and attitudes of individuals and organisations characterised by a high degree of confidence, integrity, competence and the right environment for pursuing development.

He mentioned that SIGA had a key role to play in ensuring that SOEs improve quality of service, increase revenue collection and management, become less dependent on the Consolidated Fund – all of which are geared towards achieving the vision of a country beyond aid.

By Issah Mohammed