Governance expert Professor Baffour Agyeman-Duah says President John Mahama’s decision to dissolve the boards of nine state-owned enterprises (SOEs) is a sign of his determination to make changes that will help him deliver on his mandate. Prof Agyeman-Duah, who was speaking on The Key Points, said the reasons behind the dissolutions may go beyond the […]
Governance expert Professor Baffour Agyeman-Duah says President John Mahama’s decision to dissolve the boards of nine state-owned enterprises (SOEs) is a sign of his determination to make changes that will help him deliver on his mandate.
Prof Agyeman-Duah, who was speaking on The Key Points, said the reasons behind the dissolutions may go beyond the profitability or financial performance of the affected institutions, suggesting that some boards may have been dissolved over inefficiency or possible wrongdoing that has not yet been made public.
“I’m sure the president is determined to reconstitute boards that have been proven to be inefficient, or maybe there is malfeasance which has not yet come to the public,” he said.
He said the move shows President Mahama is “more than willing to shake up his government” to fulfil his ambitions for the remainder of his term.
He added that “The profitability declaration may not be the only reason; there must be some reason that we don’t know yet.”
President Mahama, on 2 September, directed the immediate dissolution of the boards of nine state institutions and companies: Prestea Sankofa Gold Limited, the Bulk Oil Storage and Transportation Company (BOST), the Volta Aluminium Company (VALCO), Consolidated Bank Ghana (CBG), Ghana Post Company, the Road Maintenance Trust Fund, TDC Ghana, the Ghana National Petroleum Corporation (GNPC), and the National Sports Authority.
In a letter signed by the Secretary to the President, Dr Callistus Mahama, the affected board members are to be formally notified in accordance with applicable laws and governing instruments.
Management teams at the affected institutions have been directed to continue overseeing day-to-day operations under the supervision of their sector ministries until new boards are constituted, but have been barred from taking major policy, financial or contractual decisions requiring board approval without prior authorisation during the interim period.
Follow the story
