As a first step towards the Performance Contract signing between Government of Ghana and the State-Owned Enterprises (SOEs) and other entities, the State Enterprises Commission (SEC)organized a pre-negotiation meeting on 16th October 2018. This was to brief representatives of the entities, sector ministries and the ministry of finance about the process of preparing the required documents for the 2019 Performance Contracts Negotiations which commences on 5th November 2018. The meeting formed part of preparatory activities towards the 2019 Performance Contracts signing ceremony scheduled for 19th December 2018.
Prior to the signing of these performance contracts, SEC facilitates performance contract negotiations between the entities on one hand and the Government of Ghana represented by the Ministry of Finance and the relevant sector ministry on the other hand. In an effort to ensure smooth performance contract negotiations, the commission deemed it important to take all parties through the requirements and the overall processes involved in the performance contracts negotiations.
Speaking on behalf of the Executive Chairman at the Meeting, Mr. David Quaye Annang, Acting Chief of Administration, underscored the important role played by the SOEs and other entities in the Ghanaian economy. He stated that the continuous commitment of the government towards these entities requires high expectation from them. To ensure profitability, efficiency, and effectiveness, the government requires the entities to commit themselves to the signing of the performance contracts which are monitored and evaluated by SEC. Among other obligations, the government requires the SOEs and other entities to pay Dividends, Taxes and service their debts.
The Acting Executive Director, Performance Monitoring and Evaluation-SEC, Ing. John Kwesi Mensah took the meeting through the format for preparation of documents and the Performance Contract Negotiation Process. He emphasized that SOEs and other entities are required to hold Annual General Meetings (AGM) to report to their shareholders. Responsibilities of the Board of Directors and other key stakeholders were also emphasized
The requisite documents for the performance contract negotiations include; 2019 Draft Performance Contract, Updated Corporate Plan (2019-2021) and 2019 Draft Budget.
Representing the Ministry of Finance, Mr. Kwame Okyere-Mensuo, a director at the Public Entities Unit of the ministry took time to explain the new dividend policy to the SOEs and other entities representatives gathered. He mentioned that although a general directive has been issued entities will be dealt with on a case by case bases. He entreated entities to address their issues to the Ministry of Finance. They are supposed to be committed to Government on-lending policy and ensure prompt debt repayments. He mentioned that only GHS29 million out a total debt service of GHS 1,159.8 million due has so far been paid, representing a 2.5% repayment rate.
SOEs and other entities were given the opportunity to ask questions which were duly addressed by SEC and Ministry of Finance.
Giving the closing remarks, Mr. David Quaye Annang called on the entities to work to the schedule since the commission is determined to meet the 19th December 2018 contract signing ceremony deadline.