Governance Expert, Professor Baffour Agyeman-Duah, has said that the dissolution of the boards of some state-owned enterprises (SOEs) is an indication that the president wants to make changes to enable him to deliver on his mandate.
He makes the point that the reasons for the dissolution may go beyond just the profit 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 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.
