Former Public Enterprises Minister disputes Finance Minister’s claim that most SOEs are in financial distress

Former Minister for Public Enterprises, Joseph Cudjoe, has strongly refuted claims made by Finance Minister Dr Ato Forson that most State-Owned Enterprises (SOEs) are in financial distress.

Speaking at the National Economic Dialogue, Dr Forson painted a bleak picture of the state of SOEs, stating that nearly all of them were financially struggling.

“SOEs and joint venture companies are showing mounting operational and financial risk. Almost all state-owned enterprises are in the red. From ECG to the ADB, almost all of them are in the red,” he asserted.

However, in a strongly worded statement, Joseph Cudjoe rejected the claim, describing it as false and misleading.

“There are 53 SOEs. 39 reported profits in 2023, per their audited accounts. Five improved in performance from 2022 to 2023 by reducing losses. Why would the Finance Minister have the guts to say MOST of the SOEs were in the red? Meanwhile, during their time, most of these SOEs were not even preparing accounts at all,” Cudjoe argued.

He went on to clarify that Ghana has 175 public enterprises, which are categorised into three groups. He explained that 53 are SOEs, which are commercial entities expected to make a profit, while 75 are Other State Entities (OSEs), including regulators such as the Food and Drugs Authority, Petroleum Commission, and Ghana Revenue Authority. The final group consists of 47 Joint Venture Companies (JVCs), which involve government partnerships with private investors.

“Finally, there are 47 Joint Venture Companies, which are co-shared commercial investments by government with private investors. Examples include GOIL, GCB Bank, SIC Insurance, Newmont, and Goldfields. This category is largely profitable,” he added.

SOEs Are Improving, Not Declining – Cudjoe
Joseph Cudjoe also defended the performance of SOEs under the previous Akufo-Addo administration, stating that significant progress had been made in improving financial accountability.

He credited the State Interests and Governance Authority (SIGA) as an initiative that had ensured all 175 public enterprises were closely monitored and ranked on a Public Enterprises League Table (PELT). He noted that this framework had significantly improved transparency and performance in the sector.

The former minister urged the Finance Minister to present a more accurate picture of SOEs, acknowledging that while some were facing financial difficulties, the majority were performing well.

“The Finance Minister should note that there is an ongoing programme to bring the troublesome SOEs to profitability. These troublesome ones include TOR, COCOBOD, ECG, Ghana Water, and PBC. The current Finance Minister should stop peddling lies that ‘most’ are in red because it’s rather few that are in red. Most prepared accounts, got them audited, and they reported profits in 2023,” Cudjoe stated.

He further highlighted that before 2017, several SOEs were not even preparing accounts, citing examples such as the Bulk Oil Storage and Transportation Company (BOST) and Ghana Publishing Company Limited.

Joseph Cudjoe’s rebuttal has added fuel to the ongoing debate over the true state of Ghana’s SOEs, with many now calling for an independent review of the financial health of state enterprises.