SOEs are generating losses – Senior Minister laments

SOEs are generating losses – Senior Minister laments

Senior Minister, Yaw Osafo-Maafo has bemoaned the inefficiencies in the operations of most State-Owned Enterprises (SOEs), which do not make dividends proportionate to the level of government investments.

Speaking at the 2018 SOE policy and governance forum held in Accra, Osafo-Maafo said, “dividends are paid by many of you, …but what we are getting out of you does not commensurate with the volume, the type and the size of investment we have made in you.”

According to the 2017 State Ownership report, SOEs made a total of GH₵259.5 million as dividend payment to government, notwithstanding that a total on-lent loans of GHS 8, 226.8 million is outstanding as at 2017.

“It is not going to declare dividend and giving the government GH₵100,000, when indeed the size of the equity of government in that business, should have given the government GHS 5 million,” he stated.

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