Accra: President John Dramani Mahama has issued a stern warning to managers and boards of State-Owned Enterprises (SOEs) in Ghana, cautioning them against using public funds for personal luxuries while the taxpayers bear the cost. Addressing attendees at the 2026 Governing Boards and CEOs Conference organized by the State Interests and Governance Authority (SIGA), President Mahama emphasized that profits generated by state companies should be utilized in the public interest.
According to Ghana Web, President Mahama stressed that the profits of SOEs are rightfully the property of the Ghanaian people and should not be squandered on the creature comforts of management and boards. He highlighted the importance of SOEs paying the dividends owed to the government rather than retaining funds without a clear, strategic purpose. Any retained earnings must be backed by credible investment plans aimed at strengthening operations and creating long-term value.
The President acknowledged the significant financial turnaround of SOEs in 2025, noting a shift from a net loss of GHS2.26 billion in 2024 to a net profit of GHS19.8 billion in 2025. Additionally, SOEs saw a rise in total revenue from GHS137.71 billion to GHS176.43 billion. However, he cautioned against premature celebrations, attributing part of the improvement to GHS11.72 billion in foreign exchange gains and a 42.5% reduction in finance costs, rather than solely stronger operational performance.
President Mahama challenged SOEs to convert the financial relief into sustainable improvements in productivity and efficiency. He warned that a one-year turnaround, while encouraging, is not sufficient, emphasizing the need for sustained performance as the true measure of success. Leaders of SOEs who consistently fail to deliver may face losing their positions, as boards and management teams will be evaluated on clearly defined financial, operational, governance, and development targets.
The President also criticized the practice of increasing salaries and allowances at state companies that continue to incur losses. Executive compensation should be performance-based, he argued, as poor results should not merit higher rewards. He cited improvements at various state companies, including the Tema Oil Refinery, Ghana Water Company, and COCOBOD, as examples of successful turnarounds.
President Mahama concluded by reminding SOE boards and managers that state companies and their assets are not the property of political parties, governments, or individual executives, but belong to the people of Ghana.