SIGA boss highlights persistent financial losses in State-Owned Enterprises

The Acting Director-General of the State Interests and Governance Authority (SIGA), Professor Michael Kpessa-Whyte, has expressed concern over the persistent financial losses recorded by several State-Owned Enterprises (SOEs) over the years.

Speaking on Channel One TV, he identified Ghana Water Company Limited, Ghana Cylinder Manufacturing Company Limited, Tema Oil Refinery, Intercity STC, Ghana Highway Authority, and Metro Mass Transport as some of the institutions struggling financially.

Professor Kpessa-Whyte attributed these losses to poor decision-making, weak governance structures, and inadequate financial auditing. He explained that many SOEs consistently exceed their budgets and fail to generate enough internal revenue, making them financially unsustainable.

Discussing the challenges facing Ghana Water Company Limited, he pointed to illegal mining (galamsey) as a major factor driving up the company’s operational costs.

He noted that the contamination of water bodies has significantly increased the cost of water treatment, as more chemicals are required to make the water safe for consumption.

“I’m sure if you speak to them, they will tell you that over the years, their operational cost has gone up. Largely because of ‘galamsey’, they have had to spend more in acquiring the chemicals they need to treat the water into our homes,” he stated.

Addressing the challenges of Other State Enterprises (OSEs) such as the Ghana Broadcasting Corporation (GBC) and the Ghana Highway Authority, he observed that their financial struggles stem from excessive spending beyond budget allocations and an inability to generate sufficient Internally Generated Funds (IGF).

He stressed that while these institutions are vital to national development, urgent financial restructuring is needed to enhance their efficiency and sustainability.

"Clearly, they are spending more than they have budgeted for over the years. By their very nature, they are not able to generate enough Internally Generated Funds (IGF) to meet their operational costs. And some of these are very important agencies," he added.