Ghana SOE Expert Calls for Overhaul of Board Appointments to Boost Performance
Professor Albert Puni, a governance and leadership scholar at the University of Professional Studies, Accra (UPSA), has called for a comprehensive overhaul of the selection and appointment process for board members and CEOs of State-Owned Enterprises (SOEs) in Ghana. He highlighted that despite legal clarifications, successive governments have continued to dismiss SOE boards and CEOs following political transitions, often without due process.
Prof Puni attributed the chronic underperformance of Ghanaian SOEs to political interference in appointments, lack of independent oversight, and weak accountability mechanisms. He noted that most SOEs have been operating at a loss since the 1960s, with several privatized or closed down due to persistent losses. Drawing on corporate governance theories, Prof Puni emphasized the importance of ethical, competent, and independent leadership in public enterprises. To address these issues, he proposed a new framework for appointing SOE leaders, the 3C Model, which focuses on Competence, Commitment, and Character. This model aims to balance the interests of all stakeholders while ensuring accountability and performance in SOEs. Prof Puni commended the establishment of the State Interests and Governance Authority (SIGA) but expressed concern about persistent political influence undermining its potential.
Prof Puni's call for reform comes amidst ongoing challenges in Ghana's SOEs. His 3C Model offers a potential solution to improve governance, leadership, and overall performance in these enterprises. With balanced stakeholder interests and enhanced accountability, Ghana's SOEs could potentially turn their fortunes around.
