Government yesterday expressed dissatisfaction with the non-payment of dividend by some State-Owned Enterprises (SOEs), which were agreed in their performance contracts with government.

Mr Kwadwo Baah-Wiredu, Minister for Finance and Economic Planning, said in 2005, out of the 13 SOEs that proposed to pay dividend as stated in their performance contracts, only three did. In 2006, he said 10 of them proposed to pay, but only six did while last year only three paid.

"This trend is not encouraging and therefore needs to change," Mr Baah-Wiredu said in a speech read for him by Nana Kwabena Poku-Kyei, his Special Assistant, at the 2008 Performance Contract Signing ceremony between SOEs and Government.

The Minister said unlike in the past where government focused more on mobilizing funds externally, the focus had shifted to domestic mobilisation and therefore called for SOEs to operate in such a way that would generate surpluses to pay government as a shareholder.

He said even though government was aware of the numerous challenges such as obsolete equipment, inadequate working capital and cash flow problems that faced SOEs, Boards of Directors and management could overcome most of them through proactive means.

According to the Minister, they could come out with alternative ideas to turn the fortune of their companies around instead of waiting for Government's intervention.

Mr Baah-Wiredu said if SOEs became productive and efficient, it would result in the creation of more job avenues which would help reduce the unemployment levels and increase the wealth of the nation.

He said this year, the Ministry would encourage Ministries, Departments and Agencies to use retained internally generated funds to leverage funds from some financial institutions to enable them to improve their logistics, equipment and infrastructure base.

On the issue of un-audited accounts by SOEs, the Minister urged all organisations that have backlogs, to clear them by the end of the year.

The submission of the audited account, he said, was a reflection on the work of Directors and managers as well as their sense of responsibility and accountability of their stewardship. "These financial statements are tools that management requires to assess the financial strength of organisations," he said.

Boards of Directors and managers of 29 SOEs signed the contracts with their respective sector Ministers and Government of Ghana represented by the Minister for Finance and Economic Planning.

Source: GNA
Posted: 19/02/08