Policy Analyst Senyo Hosi has said the decision by President John Mahama to dissolve Boards of state-owned enterprises lacked transparency.
For him, this is not the best for the country because it doesn’t ensure accountability.
“The absence of clarity will be the undoing of this bold decision,” he said on the Key Points on TV3 Saturday, September 5.
He added, “It lacks transparency because it didn’t explain why it was fired. The president is not exercising his personal power. Nobody disputes that he has the power to hire or fire…if you are not telling us why, then where is the accountability?
“He exercises power on behalf of us, the people, so when you take bold steps like this, we can’t condemn him for not telling us the reasons. It is only right and proper that good governance is raised to the highest level.”
Similarly, Legal practitioner Martin Kpebu called on the Presidency to provide reasons for dissolving boards of some state-owned enterprises (SOEs).
He says that even if the government does not provide detailed reasons, at least a little explanation would suffice.
“Blanket dissolution of boards and reshuffles doesn’t satisfy us. The Presidency must provide reasons for such decisions because sovereignty belongs to the people,” Kpebu said on the Key Points on TV3 Saturday, September 5.
Also speaking on this matter, a Governance Expert, Prof. Baffour Agyeman-Duah, said that the dissolution of the SOEs is an indication that the president wants to make changes to enable him to deliver on his mandate.
He made the point that the reasons for the dissolution may go beyond just the profitability declaration of these SOEs.
“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.
“The president is more than willing to shake up his government that will enable him to fulfil his ambition for the remaining years.
“The profitability declaration may not be the only reason; there must be some reason that we don’t know yet,” he also said on the Key Points on TV3 Saturday, September 5.
President John Dramani Mahama had directed the immediate dissolution of the boards of nine state institutions and companies.
The affected institutions are Prestea Sankofa Gold Limited, Bulk Oil Storage and Transportation Company Limited (BOST), Volta Aluminium Company Limited (VALCO), Consolidated Bank Ghana Limited (CBG), and Ghana Post Company Limited.
The rest are the Road Maintenance Trust Fund, TDC Ghana Limited, Ghana National Petroleum Corporation (GNPC), and the National Sports Authority.
In a letter issued on September 2 by the Secretary to the President, Dr. Callistus Mahama, the directive required the appropriate authorities to take all necessary steps in accordance with the applicable laws and governing instruments to formally notify the affected board members.
Management teams of the affected institutions are to continue overseeing their day-to-day operations under the supervision of their respective sector ministries pending the reconstitution of the boards.
However, management has been directed not to take any major policy, financial, or contractual decisions requiring board approval without prior authorisation from the appropriate authority during the interim period.
The dissolved boards are expected to be reconstituted in due course.
The President also expressed appreciation to the outgoing board members for their services.
