SIGA Pushes for Stronger Powers to Enforce Punitive Measures on Poorly Performing State Entities

Amid the inefficiencies surrounding the performance of State-Owned Enterprises (SOEs), the State Interests and Governance Authority (SIGA) is pushing for a stronger legal authority to enforce compliance and impose sanctions on underperforming state entities.

Concerns over the persistent poor financial performance of SOEs have become an albatross around the neck of the state, with development partners such as the World Bank and the International Monetary Fund (IMF) warning of the possible fiscal impact of the situation.

In the 2024 State Ownership Report, it emphasized that the chronic inefficiencies and recurring losses of several major SOEs have become a “clarion call for urgent action,” undermining both their operational viability and Ghana’s broader economic development agenda.

SIGA says that although it has rolled out key reforms, including the State Ownership Policy and a Code of Corporate Governance, its current mandate limits its ability to punish inefficiency or enforce accountability beyond advisory and monitoring roles.

The report, therefore, is calling for SIGA to be granted the power to impose punitive measures that could serve as a deterrent to mismanagement, while also creating room for performance-based incentives that reward innovation and efficiency.

“To succeed, SIGA must be empowered with the authority to enforce compliance and impose punitive measures for poor performance,” the report cited by The High Street Journal demanded.

It continued, “Additionally, providing incentives for creativity and innovation will be crucial as part of broader strategies aimed at increasing profitability, efficiency, job creation, good corporate governance, and financial accountability.”

Many analysts have emphasized that such reforms are long overdue. SOEs dominate strategic sectors including energy, transport, agriculture, and finance, yet many continue to rely heavily on government bailouts despite controlling vast resources.

For instance, entities like the Electricity Company of Ghana and COCOBOD have been singled out for ballooning debts and operational inefficiencies that drain public finances.

The demands of SIGA indicate that without tougher oversight, the country risks entrenching a culture of underperformance. However, empowering SIGA to act decisively could help unlock profitability, efficiency, job creation, and improved corporate governance across the SOE portfolio.

Read More