President John Dramani Mahama has warned state-owned enterprises (SOEs) sternly, vowing to crack down on inefficiencies, corruption, and financial mismanagement. Addressing SOE executives at a meeting organised by the State Interests and Governance Authority (SIGA) on March 13, 2025, he declared that loss-making entities will either be reformed, merged, privatised, or shut down.
“Loss-making SOEs will no longer be tolerated,” President Mahama stated. “They will be swiftly reformed, merged, privatised, or shut down. Corruption, procurement fraud, and financial mismanagement will be prosecuted strictly, and boards that rubber-stamp poor decisions will be replaced.”
The President’s remarks come amid growing concerns over the financial performance of SOEs, with the 2023 State Ownership Report revealing widespread inefficiencies. Presidemt Mahama directly blamed some SOE leaders for prioritising personal enrichment over operational efficiency, citing bloated budgets, unjustified allowances, and excessive expenditures.
“Many SOEs have been used as mere instruments for personal wealth accumulation,” he said. “Some have become perennial loss-makers, draining public funds while expecting government bailouts as a right.”
To address the crisis, President Mahama announced stricter accountability measures, empowering SIGA to transition from a passive regulator to an active enforcer of state interests. The agency will now negotiate and enforce performance contracts, conduct regular financial assessments, issue binding directives, and commission independent audits to curb financial leakages.
SOE CEOs will also be required to submit audited financial statements annually, with non-compliance attracting severe penalties, including dismissal.
“If you are not prepared to be part of the reset, now is the time to walk out,” Mahama told the executives. “Your performance will determine whether you continue in your roles when we review progress in 2026.”
President Mahama emphasised that SOEs must become engines of national development, particularly in energy, transport, manufacturing, agriculture, and finance. He urged executives to align with his administration’s reset agenda, which prioritises efficiency and economic transformation.
“We have made real progress in less than 120 days, but this is just the beginning,” he said. “Together, we shall reset our economy and build a stronger future for our country.”
