The State Interest and Governance Authority(SIGA) has developed a “Corporate Governance Code” for State-Owned Enterprises.
This was done in consultation with relevant stakeholders.
Speaking at a stakeholders consultation forum on the Draft code in Accra on Tuesday, September 7, 2021, the Director-General of SIGA, Mr.Stephen Asamoah Boateng, indicated that the initiative was necessitated by the inadequate governance frameworks and procedures, which contribute to the poor financial performance of many specified entities in the Country.
Thus the Code, according to him, is to strengthen good corporate governance practices in specified entities to enhance national development.
The forum provided a platform for all stakeholders to offer their feedback and necessary inputs into the Draft Code.
Furthermore, Mr. Asamoah Boateng bemoaned the fact that state Agencies were governed by a complicated leadership web that involves Parliament, Ministries, Regulatory Commissions, Boards, and others.
“This has muddled the division of responsibilities and accountability for performance, especially between the Board and Management. In some cases, Chief Executive Officers and Board appointments are made based on political considerations rather than merit, contributing to the ineffectiveness of some Boards,” he said.
Also, he mentioned that by Section 4 (d) of its Act (Act 990), his outfit was required to develop a code of corporate governance to provide a framework for Specified Entities actions and their performance.
However, he indicated that the need to produce a quality document that will stand the test of time; which will be owned and accepted by all stakeholders, necessitated the forum.
The Director-General moreover, commended the Ministry of Public Enterprise and the Agence Française de Development for funding the workshop.
Also, Mr.Asamoah Boateng urged stakeholders of the workshop to provide the necessary input that will help SIGA to produce a document that will transform and change the administration of State-Owned Enterprises, Joint Venture Companies, Regulators, and Other State Entities.
“It is simple to make recommendations for how to proceed. To effect change on the ground, it takes foresight, a lot of hard effort, and a commitment to carry out policies at all levels of the economy’s decision-making,” he concluded.