SOEs cause about GH¢6bn in financial losses to the state, Finance Ministry
CEO of Dalex Finance, Ken Thompson, has bemoaned the non-performance of Chief Executives of State-Owned Enterprises stating that it is hard for them to deliver on the job since most of them are not qualified.
He asserted, however, that appointments of most CEOS come after they’ve helped political parties win power as a reward not because they are competent.
The issue of fat salaries and allowances of CEOs of State-Owned Enterprises have been of major concern as SOEs keep recording massive losses to the tune of GH¢6bn yearly as quoted by the Finance Ministry.
Speaking on Joy FM, Mr. Thompson stated that, the reason people are concerned about the huge salaries is the fact that the monies paid do not match performance.
“The issue is not how much they are paid. The issue is that they don’t do anything for it,” he said.
“The problem is that it’s very difficult for them to perform. It’s impossible because when they get there, they are appointed because it’s a reward because of something they have done – he was [either] a serial caller, he cooked for delegates, or he provided accommodation for the people when they came to his region or when there was a constituency election, he provided the chairs."
“So, he’s done the work already and he’s being rewarded, and therein lies the problem. First, there is no measurement of performance. Secondly, it’s a reward and it’s not so much the money but people are worried that they spend tax payer’s money and they get nothing,” he noted.
Legal practitioner, Samson Ayenini, however gives the breakdown of the allowances as follows:
1. Holiday facilities, both internal and external holidays, for not more than six persons, not more than three rooms, and for not more than 5nights per year in Ghana or elsewhere, exclusive of annual.
2. Retirement package is calculated at 12% of the gross salary which is to be set aside by the employer.
3. Parting gift includes one top-of-the-range multimedia laptop of your choice with accessories.
4. If you have been at post for more than two calendar years, you get an additional gift valued at 50% of one month’s gross salary
5. If you have been at post for two to four years you get an additional gift valued at one month’s gross salary.
6. If you have been at post for over 4years you get an additional gift valued at 2 month’s gross salary, the official saloon vehicle that you may have been using will remain yours or you can procure at a discount of 50%
There are also end of service benefits for these state-owned enterprise managers
1. 4months gross salary at the point of disengagement for every calendar year
2. Benefit of a housing loan of about GH¢6000
3. Home enhancement loan of about GH¢2000
4. Travel per diem of GH¢1500dollars
5. Salary increases to be at 20%
6. Medical care for spouse and children up to 21 years onwards
7. Mandatory full medical examination yearly abroad
8. Free medical care after retirement for spouse and children up to 21 years
9. Allowance for a replacement for eye lenses GH¢1000cedis yearly
There is also an out-of-station allowance where accommodation and meals will be provided, an inconvenience allowance of GH¢500 per day.
Others are funeral grants and donations.
Special allowance including, household allowance, Utility subsidy, Responsibility allowance- GH¢1500cedis a month
Entertainment allowance- GH¢1500 a month
Satellite tv connection on DStv GH¢500cedis a month
Security guards 2personnel at night 1during the day
Ken Thompson is CEO of Dalex Finance