President John Dramani Mahama has directed state-owned enterprises and other public institutions to recruit and promote staff strictly on merit, warning that political connections, personal relationships and proximity to power must not substitute for competence, integrity and performance.
He said the directive formed part of a broader effort to transform state institutions into efficient, accountable organisations capable of creating measurable value for the Ghanaian people.
He was addressing the SIGA Governing Boards and CEOs’ Conference 2026 in Accra, yesterday, which was under the theme: ‘Creating Public Value Through Leadership, Corporate Governance and Performance Excellence”.
President Mahama said public ownership could no longer be used to justify poor productivity, slow service delivery or weak accountability.
“Build institutions, not personal fiefdoms. Recruit and promote on merit, develop talent and implement credible succession plans,” he told board chairpersons and Chief Executives.
He said an institution that became unstable whenever its Chief Executive was changed had failed to develop the systems required for continuity and long-term performance.
The President also warned boards and managements against conflicts of interest, abuse of office and wasteful expenditure, directing that procurement must be lawful and competitive, while contracts, investments and disposal of public assets must withstand scrutiny and demonstrate value for money.
Improved performance
President Mahama commended several state entities for improved financial performance in 2025, but cautioned that the gains must not be attributed solely to favourable economic conditions, including exchange-rate movements.
The State Ownership Report showed that state-owned enterprises increased their combined revenue from GH¢124 billion to GH¢176.43 billion in 2025, while their aggregate net position moved from a loss of GH¢2.26 billion in 2024 to a profit of GH¢19.8 billion.
The President said about GH¢11.72 billion in net foreign exchange gains and a 42.5 per cent decline in aggregate finance costs had contributed significantly to the improvement.
He, however, said the challenge was to convert the favourable conditions into sustained operational efficiency and stronger underlying performance.
He cited the Tema Oil Refinery, which moved from a net loss of about GH¢745 million to a net profit of GH¢1.09 billion in 2025, describing it as its first net profit in almost a decade.
The Ghana Water Company Limited also moved from a loss of GH¢3.06 billion to a profit of about GH¢635 million, while the Ghana Cocoa Board moved from a loss of GH¢5.73 billion to a profit of GH¢5.11 billion.
The Gold Board recorded a net profit of about GH¢896.5 million, compared with GH¢178.5 million in 2024.
President Mahama also recognised the consistent profitability of the Ghana National Petroleum Corporation, Ghana Ports and Harbours Authority, Minerals Income Investment Fund, BUI Power Authority, Ghana EXIM Bank, Ghana National Gas Company, TDC Company Limited, Ghana Supply Company Limited and Venture Capital Trust Fund.
He said five state-owned enterprises had recorded losses in every year between 2021 and 2025, while other state entities recorded an aggregate deficit of about GH¢10.48 billion in 2025.
Performance and accountability
The President directed boards and managements to work with the State Interest and Governance Authority (SIGA) to establish measurable targets covering financial performance, service delivery, governance, risk, audits, compliance and contributions to national development.
He said performance contracts must be treated as binding commitments to the Ghanaian people rather than administrative paperwork.
“Strong performance will be recognised. Weaknesses will be addressed through targeted improvement measures. Persistent failure, resistance to oversight, or misuse of public resources will attract firm consequences,” he warned.
He also demanded timely audited financial statements, quarterly reporting, annual general meetings and complete disclosure of material financial and operational risks.
According to the conference proceedings, only 72 of 148 targeted entities signed performance contracts in 2025, while only 71 submitted quarterly reports on time. Only 37 of 177 targeted entities held annual general or stakeholder meetings.
President Mahama said such compliance gaps could expose the public purse to significant risks. He further directed SIGA to strengthen monitoring and establish a clear reporting framework for government representatives serving on joint venture boards.
Such representatives, he said, must regularly report on material decisions, financial performance and emerging risks affecting the state’s interests.
The President also warned against indefinite government support for poorly managed enterprises, saying state resources used to bail out inefficient institutions could otherwise finance classrooms, health facilities, roads, jobs and social protection.
He said profitable entities must also meet their dividend obligations because returns on public investment ultimately belonged to the people of Ghana.
“Public ownership must produce public value,” President Mahama said, challenging every board and chief executive to demonstrate what additional value their institution had created through profits, jobs, infrastructure, improved services or national development.
He said SIGA would be expected to track performance and make results visible, while persistent non-compliance would weigh on decisions concerning the continued tenure of responsible appointees.
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