August 13, 2022

Public companies will face severe penalties for their untimely financial reports – Bawumia

Vice President, Dr. Mahamudu Bawumia

SOEs that fail to meet the deadline required by law when submitting their financial reports will be severely sanctioned, Vice President Dr. Mahamudu Bawumia said.

According to Dr. Bawumia, the state of reporting has improved considerably from what it was before; therefore, the various entities cannot continue the untimely presentation of their financial reports – indicating that the use of digital technology should make reporting much easier and more transparent in the future.

“We had entities that had not presented audited accounts for a long period. There are still several non-compliant financial reporting entities. I would also like to state that regarding timely financial reporting, the honeymoon is long over and severe penalties will follow from now on for those who fail to meet the required deadlines as specified in the law,” he noted.

Dr. Bawumia raised this concern in his speech at the Public Enterprises League Table (PELT) awards through a recorded video.

Commenting on the losses suffered by some state agencies, Dr Bawumia said it was not fair for entities that were entrusted with key state assets to report losses so that tax revenue for services essentials are diverted to support them.

Speaking about the measures taken by the Ministry of Public Enterprises, the Vice President said he was informed by the Minister of Public Enterprises that a State Ownership Policy (SOP), Performance Management Framework (PMF) and a Corporate Governance Code (CCG) for entities have been developed in collaboration with the Ministry of Finance, the Public Utilities Commission and the State Interests and Governance Authority (SIGA) for consideration by office.

With the performance agreements signed between the entities and SIGA, Dr. Bawumia indicated that he expects to see a vibrant and profitable specified entities sector in the country in the future.

“The government intends for some public companies to be listed on the Ghana Stock Exchange. It is about giving Ghanaians the opportunity to participate in their activities.

“It will also open companies to greater transparency and the principles of good corporate governance. In addition to the above, the listing will make additional capital available to companies for investment and growth without resorting to the government for capital injections,” he said.

PELT prices

The Public Enterprise League Table (PELT), according to the Minister in charge of Public Enterprises, Joseph Cudjoe, is a tool to generate competition and will rank the performance of the entities according to the achievement of the objectives set and agreed in the contract. annual performance report that they sign. with SIGA.

It is designed to be a technical ranking system across multiple dimensions – ranging from finance, efficiency and productivity, to management improvement and innovation. He mentioned that there are plans to promote innovation in the management of public enterprises.

It should trigger a derivative motivation on the part of boards and CEOs to want to better solve the problems of high debt, loss, inefficiency, low innovation, lack of research and development of public companies.

The first edition of the PELT Awards was held under the theme “Improving Industry Business Outcomes” and honored a dozen public companies that have achieved outstanding performance meeting established criteria.

Mr. Cudjoe urged SOEs to allow PELT to continue to remind them of the issues of profitability, dividend payment, timely notification, efficiency in service delivery and many more that remain challenges to solve for the sector.

Winners

Most Innovative State Enterprise – Volta River Authority

Most Innovative Regulator – Ghana Gaming Commission

Most Compliant Public Company – Ghana National Petroleum

Most Compliant Regulator – Environmental Protection Agency

Most Financially Sustainable Regulator – Foods and Drugs Authority

Most Efficient Regulator – Water Resources Commission

Best Cross-Trade Specified Entity – Food and Drugs Authority

Most Numerical Specified Entity – Driver and Vehicle Licensing Authority

State Enterprise of the Year – TDC Development Company Limited

Regulator of the Year – Driver and Vehicle Licensing Authority

Global Specified Entity of the Year 2020 – TDC Development Company Limited