Joseph Cudjoe (left) shares a moment with the SIGA boss, Edward Boateng
Akufo-Addo tasked me to solve problems with state enterprises, Joseph Cudjoe
Read full articleSIGA boss expresses joy at launch of PELT
My job is to ensure the that the mistakes of the past are dealt with effectively, Cudjoe
The Minister for Public Enterprises, Joseph Cudjoe, has admonished the media not to only project the challenges of state enterprises but to contribute to making them vibrant, effective, efficient and profitable.
This, he said, is because they constitute about a third of the total economy of the country.
“This is because they constitute about a third of the total economy of the country, and I encourage you to engage and discuss the issues dispassionately, to make them perform”, he stated.
He made this known during his Ministry's collaboration with the Ministry of Finance, and the State Interest and Governance Authority (SIGA) to launch the Public Enterprises League Table (PELT).
The initiative is to encourage the public to see the assessment of Specified Entities (SEs) based on a league table the ministry is developing.
PELT also aims at assessing the performances of Specified Entities (SEs) regarding compliance, a statement said.
The PELT is mainly to create competition among the specified entities which include the State-Owned Enterprises (SoEs), Joint Venture Companies (JVCs) and Other State Entities (OSEs) as stipulated in the SIGA Law, ACT 990.
Launching the PELT, the sector minister, Joseph Cudjoe, observed that the initiative is to reward companies that are doing well and to encourage those that are not doing well to be provided with the necessary support to achieve or face the necessary sanctions.
According to him, it is also to provide peer learning and experience sharing opportunities as well as to encourage SEs to trade among themselves.
The minister explained that his appointment was to solve a 65-year-old problem in the sector which has been characterized by high indebtedness, loss-making, non-performance and in some instances, collapse.
Joseph Cudjoe also pointed out that the president had tasked him to develop policies that will engender good performance from the SE sector to generate income for the economy and also make sure that there is industrial expansion and institutional growth to create jobs for the masses.
“Since 2017 however, the government of HE Nana Addo Dankwa Akufo Addo, has indicated clearly, its willingness to ensure that the mistakes of the past are dealt with effectively. Consequently, the many years of non-reporting, inefficient leadership and creating an opportunity for political sympathisers and supporters has come to an end,” he said.
For his part, the Director General of SIGA, Edward Boateng, indicated that the PELT is a good measuring tool which will assist the efforts to encourage the improvement in the performance of SEs.
“This initiative, we hope will enable our specified entities contribute about 30% minimum to our GDP. SEs control about 50% of our national assets. As we speak now, their contribution to GDP is quite low and our target is to raise it to about 30% to help improve our national fiscal space. We hope that this award will inspire them to grow for us to meet the target. For them doing more will help us generate the needed income to build our country,” he said.
He further emphasized that PELT will be based on the performance evaluation in the Performance Contract the specified entities sign with the SIGA to ensure compliance with the provisions in the contract.
It will also offer the opportunity to rank the SEs by the negotiated and agreed indicators and present in the League Table Form, he added.
Furthermore, it is designed as an add-on feature of the assessment tool for the post evaluation of SEs, pursuant to the Performance Contract Implementation, which provides MPE, SIGA and the Ministry of Finance (MoF) with the measurable indicators to conduct a peer ranking exercise to achieve its mandate.
The resultant PELT is to be published and deserving SEs awarded during the Annual PELT Awards Programme which has been slated for the 27th of May 2022.
Other objectives of the PELT are to promote innovation in the management of the SEs to ensure organizations are not only profitable but also efficient, provide non-pecuniary incentives for improved performance, boost the stature of performing organizations, recognize/Award Chief Executive Officers (CEOs)/Managing Directors (MDs)/Director Generals and Boards of performing SEs as well as to provide a pathway for recommending the promotion of performing CEOs/MDs/DGs to be elevated to occupy similar positions in more prominent SEs.