Corporate governance expert Kwaku Anane Gyinde has applauded President John Dramani Mahama for directing the State Interests and Governance Authority (SIGA) to conduct independent audits of state-owned enterprises (SOEs) to evaluate their efficiency and financial viability.
Mr. Gyinde stressed the need to separate politics from the governance of SOEs, advocating for a competitive and merit-based selection process for board members.
He further argued that the primary reason for SOE inefficiencies is political interference in their governance.
He pointed out that under Article 70 of the Constitution, appointments to the boards of SOEs are largely political, often sidelining competence and expertise.
“If you appoint people who are politically inclined but lack the necessary expertise to lead these entities, the result is inefficiency,” he stated.
He further criticised the frequent changes in SOE leadership, arguing that it negatively impacts long-term strategic planning.
“Strategic decisions in business take years to mature, but in Ghana, we change board members every four years. How can we expect these enterprises to function effectively?” He questioned in an interview with Asaase Radio.