Mahama Cracks Down on State Enterprise CEOs Over Audited Account Lapses

President John Mahama has issued a stern warning to chief executives of state-owned enterprises (SOEs), stating that failure to submit audited accounts and annual reports within stipulated deadlines set by the State Interests and Governance Authority (SIGA) could lead to their dismissal. The President delivered this caution during a diaspora town hall meeting on May 31, emphasizing the government’s commitment to enhancing oversight of state institutions. This move is part of a broader strategy to bolster accountability, promote transparency, and ensure sound economic management across public entities.

Increased Scrutiny on Public Finances

President Mahama expressed significant concern over the prolonged lack of financial reporting in some SOEs, noting that several have operated for years without producing essential audited financial statements or annual reports. He characterized this situation as unacceptable, highlighting that weak oversight and mismanagement of public institutions impose an undue burden on the national economy.

The President elaborated that financial losses stemming from underperforming SOEs often transform into liabilities for the state. This directly increases pressure on public finances and can undermine national efforts aimed at sustaining economic recovery and stability. The government views timely and accurate financial reporting as a critical component of responsible fiscal stewardship.

Performance Metrics Tied to Accountability

In response to these challenges, the submission of audited accounts and annual reports has been officially integrated into the key performance indicators (KPIs) for chief executives of SOEs. This means their job security and performance evaluations are now directly linked to their compliance with financial reporting regulations.

“We found out that some state-owned enterprises had not presented annual reports or audited accounts for seven years,” President Mahama stated. “We have made the submission of audited accounts and annual reports a key performance indicator. I have told the CEOs that SIGA has set a deadline. If you have not presented your audited accounts and annual report by then, you will have to leave the office.”