Finance Minister Dr. Cassiel Ato Forson has expressed shock at the staggering financial losses of GIHOC Distilleries, a state-owned alcohol-producing enterprise, under the Akufo-Addo administration. The revelation has sparked nationwide concern, with former President John Dramani Mahama promising decisive action to address inefficiencies in State-Owned Enterprises (SOEs).
Speaking during a high-profile meeting with CEOs of SOEs, Dr. Forson highlighted the alarming trend of financial mismanagement, pointing to GIHOC’s performance as particularly baffling.
“GIHOC Distilleries reported losses of GHS25.1 million in 2022 and GHS25.5 million in 2023,” he revealed. “Mr. President, this is shocking. Even a company that produces alcohol—a commodity with high demand—cannot stay profitable.”
The Finance Minister did not stop there, painting a grim picture of the overall state of SOEs. He outlined significant losses recorded by several high-profile enterprises:
Electricity Company of Ghana (ECG):
GHS1.46 billion loss in 2021
GHS8 billion loss in 2022
GHS5.96 billion loss in 2023
Ghana Grid Company (GRIDCo):
GHS93.5 million loss in 2022
GHS8.6 million loss in 2023
Graphic Communications Group:
GHS3 million loss in 2021
GHS4.4 million loss in 2022
GHS15.1 million loss in 2023
Ghana Cocoa Board (COCOBOD):
GHS2.4 billion loss in 2021
GHS3.8 billion loss in 2022
These revelations have raised serious questions about the viability of Ghana’s SOEs and the stewardship of public resources.
Mahama Declares War on Loss-Making SOEs
Reacting to the grim financial performance, President John Dramani Mahama issued a stern warning to underperforming SOEs, promising sweeping reforms to restore efficiency and profitability in the sector.
“Loss-making SOEs will no longer be tolerated. They will be merged, privatized, or shut down,” Mahama declared.
He emphasized that the government cannot continue to subsidize failing enterprises at the expense of taxpayers, especially during a period of economic hardship. Mahama stressed the need for SOEs to be competitive, profitable, and self-sustaining.
“The era of inefficiency is over. We cannot afford to have entities that drain national resources instead of contributing to economic growth,” the President added.
The Path Forward
President Mahama’s administration is expected to roll out a comprehensive plan to reform SOEs, including enforcing stricter accountability measures, restructuring leadership, and exploring public-private partnerships. The government aims to position SOEs as drivers of economic growth rather than liabilities.
The shocking figures from GIHOC and other SOEs have reignited debates about the governance and oversight of state enterprises, with many calling for swift and decisive action to prevent further economic losses.
Story by:Mercy Addai Turkson #ahotoronline.com
