Mahama warns SOE boards against using public funds for perks

President John Dramani Mahama has issued a stern warning to boards and management of State-Owned Enterprises (SOEs), cautioning them against using public funds to finance personal benefits while taxpayers carry the burden.

Speaking at the 2026 Governing Boards and CEOs Conference organised by the State Interests and Governance Authority (SIGA) on Thursday, September 10, 2026, President Mahama said profits generated by state enterprises must ultimately serve the Ghanaian people.

‘Don’t use public money for creature comforts’

President Mahama was blunt in his warning, telling SOE leaders that profits belonging to the state should not be diverted into perks and personal comforts for management and board members.

He stressed that profitable enterprises have a responsibility to meet their dividend obligations to the state because returns on public investments belong to Ghanaians.

SOEs move from GH¢2.26bn loss to GH¢19.8bn profit

The President acknowledged a significant improvement in the overall financial performance of SOEs.

According to figures presented at the conference, the sector moved from an aggregate net loss of GH¢2.26 billion in 2024 to a net profit of GH¢19.8 billion in 2025.

Combined revenue also rose from GH¢137.71 billion to GH¢176.43 billion over the same period.

However, Mahama cautioned that the improvement should not automatically be interpreted as evidence of stronger underlying operations.

He noted that about GH¢11.72 billion in net foreign exchange gains and a 42.5% reduction in aggregate finance costs contributed significantly to the improved results.

‘A one-year turnaround is not enough’

President Mahama said the real test for SOEs would be whether they could sustain the gains beyond a single year.

“A one-year turnaround is encouraging, but sustained performance is the real test,” he said.

He warned that boards and management teams would be assessed against defined financial, operational, governance and development targets.

Persistent underperformance, he added, could lead to corrective measures and, where necessary, leadership changes.

‘A board is not a ceremonial position’

The President also challenged board members to take their responsibilities seriously, stressing that their appointments were not merely ceremonial.

He said boards are responsible for strategic direction, policy, risk oversight, financial reporting and institutional performance.

At the same time, he warned boards against interfering excessively in the day-to-day operations of their institutions, stressing the distinction between governance and management.

“Boards govern and management manages,” he said.

Performance must determine pay

Mahama further argued that executive compensation in public enterprises should be tied to performance.

He said high-performing enterprises and their leaders should be appropriately rewarded, but questioned the justification for continually increasing salaries and allowances in chronically loss-making entities.

The President also highlighted the proposed Independent Public Emoluments Commission (IPEC), which is expected to strengthen consistency and transparency in public-sector remuneration and link compensation more closely to institutional performance.

‘Public ownership must produce public value’

President Mahama noted that despite the overall improvement, some SOEs continued to struggle, with five entities recording losses in every year between 2021 and 2025.

He therefore directed boards to scrutinise major expenditures and determine whether they were necessary, economical and consistent with their institutional mandates.

The President reminded SOE leaders that state assets do not belong to individual governments, boards or chief executives.

They belong to the Ghanaian people.

His message to board chairpersons, members and chief executives was therefore clear: the public expects measurable value from the assets entrusted to them.

As the government pushes for greater efficiency and accountability across the SOE sector, President Mahama’s warning signals that public resources must translate into public value — not private perks.