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Business News of Tuesday, 27 July 2021


You risk being made redundant if you underperform – SIGA tells state-owned enterprise CEOs

Executive Director of SIGA, Stephen Asamoah Boateng play videoExecutive Director of SIGA, Stephen Asamoah Boateng

•State-owned enterprise CEO's have been warned to perform earnestly or risk facing the sack

•Since 2016 to date, 47 enterprises have failed to submit their financial statements to the Ministry of Finance

•Only 14 state-owned enterprises have so far complied with the directive of submitting their financial statements as at the end of 2019

Executive Director of the State Interest and Governance Authority, Stephen Asamoah Boateng has cautioned Chief Executive Officers of State-Owned Enterprises to work earnestly or risk being made redundant should they underperform at the end of the 2021 fiscal year.

This warning comes after 47 enterprises have since 2016 to date, failed to submit their annual financial statement to the Ministry of Finance, which is in contravention of Public Financial Management (PFMA) Act 921.

Executive Director for SIGA however cited the Coronavirus pandemic as the reason for which the companies have failed to comply with the directive adding that they have since been granted time to submit their financial statements.

Speaking at the 2021 Performance Contract Signing Ceremony on Monday, July 26, Mr Asamoah Boateng, said that an appraisal measure for the performance of CEOs will ensure they comply with the rules of engagement, especially corporate governance.

“We at SIGA have the authority to recommend for the termination of contract of any CEO that fails to deliver and beyond the call for dismissal we can also ask the appointing authority [Office of the President] to block bonus payment or salaries. And we believe this will push them to work efficiently,” he hinted.

He added the Performance Contract will also ensure that state enterprise will be made to be profit oriented and competitive to deliver quality services.

Already, some 71 out of 123 state enterprises have signed respective performance contracts which will see to their assessment and evaluation of work and delivery of their mandate.

Meanwhile, the Finance Minister, Ken Ofori-Atta, on his part disclosed that only 14 state enterprises have so far complied with the directive of submitting their financial statement to his outfit as at the end of 2019.