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Business News of Sunday, 19 September 2021

Source: www.ghanaweb.com

Quarterly reports to Finance Ministry: These companies are up-to-date

Ken Ofori-Atta, Minister of Finance Ken Ofori-Atta, Minister of Finance

A recent report has shown that in contravention of the Public Finance Management Act 2016, Act 921, some 45 State Enterprises have failed to submit financial statements to the Ministry of Finance since 2016.

The composition of the defaulting companies are: one State Owned Enterprises (SOEs), 34 Owned State Enterprises (OSEs) and 12 Joint Venture Companies.

The report, however, discloses that out of 129 SOEs and OSEs, 14 of them complied with the requirement of section 93 of Act 921 to submit quarterly reports.

The reports supposed to be submitted to the sector minister are in relation to their 2018 approved business plans.

The compliant enterprises include Cocoa Processing Company, Drivers Vehicles Licensing Authority, Ghana Civil Aviation Authority, Ghana Cylinder Manufacturing Company, Ghana Re, GIFEC, Ghana Investment Promotion Center, Ghana Standards Authority, State Housing Company and the Volta River Authority.

The report further pointed out that SOEs in the energy sector were the most compliant with the necessary regulations under section 77 of the Public Financial Management (PFM Act) which obligates them to avail quarterly financial statements to relevant ministry.

The quarterly report according to the law must contain principally, their outstanding debt and new borrowings as well as overdrafts and other figures relative to corporate debt securities issued.

The report added that despite the challenges of failure to comply with the law, some positives could be gleaned especially since 2016 when the law came into effect.