You are here: HomeBusiness2017 10 03Article 587438

Business News of Tuesday, 3 October 2017

Source: citibusinessnews.com

Pay dividend and leave development to government—SOEs warned

The State Enterprises Commission (SEC) is set to roll out measures that will streamline conditions under which state agencies can spend their resources on corporate social projects.

According to the enterprise, the term has been used to misappropriate state funds, ending up the pockets of individuals.

Speaking to Citi Business News on the matter, the Executive Chair of the State Enterprises Commission, Stephen Asamoah Boateng stated that boards have been warned not to approve such budgets.

“You can’t go and sign something and say social corporate responsibility and inflate the figures. It is one area that if you are not financially astute you will see that most state companies put monies there just to spend. When you ask them what  are you doing, they say we went to build something for the underprivileged”.

Mr. Asamoah Boateng stated that even though the SEC is not against state owned companies helping the society in which they operate, it is however imperative for such acts to be regulated to prevent misappropriation of public funds.

“Corporate Social Responsibility is a good idea, but what has does got to do with your objective as business, if there isn’t, then pay your dividend to government then government’s responsibility is to look after the underprivileged, but you cannot just say corporate social responsibility and put a huge figure there, that is where if you are not careful things happen,” he observed.

Mr. Asamoah  Boateng stated that boards of state owned companies have been educated and directed to observe the directive.

He assured that SEC will intensify its monitoring and education to ensure that companies abide by the directive.