A Vice President of IMANI Africa, Kofi Bentil, has said that President John Dramani Mahama acted within his powers to dissolve the boards of the state-owned enterprises (SOEs).
He noted that the President has so much power to act; however, those powers should be exercised carefully.
“I don’t think the President has done anything wrong. It is actually within his power.
“The President is within his power to do what he has done, but some of us believe that, going forward, we should manage the powers of the President. The President has a lot of powers, but he does not have to use all of them,” he said on the Key Points on TV3 Saturday, September 5.
For his part, Governance Expert, Prof. Baffour Agyeman-Duah, has expressed the view that the reason for dissolving boards of some state-owned enterprises could be more than just the profitability declaration.
He said the issues may be about financial malfeasance, which has yet to come to the public domain.
“I strongly suspect that perhaps the profitability declaration may not be all that is behind the decision. 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.
For his part, legal practitioner Martin Kpebu called on the Presidency to provide reasons for dissolving boards of some state-owned enterprises.
He said 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 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.
