SIGA developing performance contract negotiation systems for SoEs-D-G

The Director-General of the newly created State Interests and Governance Authority (SIGA), the, Mr Stephen Asamoah Boateng, has reiterated that the new authority will focus on transforming SoEs to become efficient.

Speaking in an exclusive interview on Nyankonton Mu Nsem on Rainbow Radio 87.5Fm, he said SIGA will develop a performance contract negotiation systems that will set targets for the various state owned enterprises to meet.

He said SIGA will also look at recapitalising some state agencies by way of converting debts of some SoEs to equity, and also encouraged all CEOs to ensure that they declare dividends.

He gave an assurance that SIGA will collaborate with other agencies to accelerate the development of Ghana beyond aid.

Parliament passed the State Interests and Governance Authority (SIGA) Act, 2019 (Act 990) in April 2019, and the President assented to it in June.

With the passage, board members and chief executives would be held accountable for their decisions.

The Act has prescribed stiffer punishments, including five to 10 years of imprisonment for board members and chief executives.

The SIGA that now assumes the role of the State Enterprises Commission (SEC) and the Divestiture Implementation Committee (DIC), would ensure the efficiency and financial viability of SOEs and help them to deliver on their mandate.

All the assets and liabilities of the defunct SEC and the DIC had been transferred to the SIGA.The law establishing SIGA, (Act 990), had empowered the body to prosecute board members and corporate executives who break or sidestep corporate governance regulations.

Those who violate the law could face a jail term of not less than 5 years, and up to 10 years.

The Authority, established due to the negative returns on state owned companies and corporate governance challenges, would be responsible for assisting the Finance Ministry to assess the borrowing levels of the state owned enterprises and other state enterprises in accordance with the relevant financial laws.

The SIGA would also ensure that the various state owned enterprises, joint venture companies and other state enterprises pay the dividends due to the state.

He explained that  most of the SOEs and joint venture companies had sustained losses and become highly indebted and on the verge of collapse.

As a result of systemic internal failures, the majority of the companies had been unable to pay dividends to the state, while others were relying on government bailouts.

However, SIGA has come to resolve all these challenges, he concluded.

By: Rashid Obodai Provencal

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