State Organisations Sign Performance Contract Agreement

Nineteen State Owned Enterprises (SOEs) have signed performance contract agreements with government. The agreement sets out objectives and targets to be achieved within a specified period. A Deputy Finance Minister, Dr Gheysika Agambila said inadequate investment return in SOEs was a serious source of concern to the government. He said out of the 31 SOEs expected to pay dividends, only six declared and paid dividends of 25.15 billion cedis for the financial year 2000.

Projected dividends for 2001 was 20.29 billion cedis while that of 2002 is 6.7 billion cedis. "These are indeed depressing figures, but my belief is that the performance contracting system will be used to maximise returns on investments to the government,” the deputy Minister said. Dr Agambila urged the enterprises to place emphasis on higher productivity, efficiency and profitability to guarantee their growth and development.

He further reminded state enterprises that have not declared dividend to adopt prudent management practices and make the best use of their resources to meet the expectations of their shareholders.

The organisations that signed the contract include Precious Minerals Marketing Company, GIHOC Distilleries, Ghana Ports and Harbours Authority, Ghana Supply Company, Community Water and Sanitation Agency, Ghana Water Company and Graphic Communications Group Limited.

Others are Tema Development Corporation, State Housing Company, Architectural and Engineering Services Company, Ghana National Procurement Agency and Omnibus Service Authority. The rest are Ghana Post Company, Ghana National Theatre, Ghana COCOBOD, Ghana Railways Corporation and Grains and Legumes Development Board.

Five others, the Volta River Authority, Electricity Company of Ghana, Tema Oil Refinery, Ghana Oil Company and Ghana Broadcasting Corporation would later sign theirs after clarification with their respective sector ministers. The New Times Corporation, Assembly Press, Ghana Highway Authority and Ghana Airways backed out of the negotiations prior to the signing of the agreement for various organisational, administrative and financial reasons. The Ghana News Agency also took part in the negotiations, but its position was not clear as it was under the National Institutional Renewable Programme.