Accra: Professor Michael Kpessa-Whyte, Director General of the State Interests and Governance Authority (SIGA), has issued a stern warning to state entities regarding severe sanctions for non-compliance with performance contracts. This move comes as some state-owned enterprises, joint ventures, and other state entities have shown a weak commitment to these contracts.
According to Ghana News Agency, the Director General delivered these remarks during a high-level meeting on performance contracts with selected specified entities in Accra. The gathering aimed to emphasize the urgent need for compliance with performance contracts and highlight the consequences of failing to meet these obligations.
The event brought together key public officials from various state entities, following a previous meeting with the Chief Executive Officers (CEOs) of State-Owned Enterprises (SOEs) and Joint Ventures. During the initial meeting, CEOs were thoroughly briefed on the modalities of performance contracts and the repercussions of non-compliance.
Performance contracts encompass key variables such as efficiency and productivity, management improvement and project implementation, and economic and financial positions. Professor Kpessa-Whyte warned that sanctions for non-compliance could include dismissal, public naming and shaming of entity heads, and the dissolution of boards.
He stated, “We can publish the names of entities that have demonstrated a weak culture towards signing performance contracts or have signed performance contracts but are not enforcing them religiously or are not using them religiously to guide their operations. SIGA can name and shame some of these entities or organisations, and I think nobody likes naming and shaming because it has reputational damage for them.”
The Director General urged SOEs to adhere to performance contracts to foster proper corporate governance within their respective entities. He emphasized the critical importance of these contracts, noting that they serve as a benchmark for performance, guide the establishment of key performance indicators, and ensure compliance with statutory reporting to SIGA.
Professor Kpessa-Whyte also highlighted the timeliness of the meeting with the CEOs, given the recent appointment of many CEOs who might not be fully aware of their obligations to SIGA. He announced that SIGA would organize capacity-building workshops on corporate governance for entities in the coming weeks, aiming to help them internalize values and norms and prevent common mistakes associated with running state institutions.