Mahama tells SOE bosses: Public profits are not for your perks2.

President John Dramani Mahama has warned boards and management of Ghana’s state-owned enterprises against using public funds to finance personal benefits at the expense of taxpayers.

He said profits generated by state enterprises belonged to the Ghanaian people and should not be diverted into comforts for board members and executives.

“You must not use profits that rightly belong to the Ghanaian people to finance the creature comforts of management and boards,” the President said.

Mr Mahama issued the warning at the 2026 Governing Boards and CEOs Conference organised by the State Interests and Governance Authority on Thursday, 10 September.

He said profitable state enterprises must meet their dividend obligations because returns on public investments ultimately belonged to Ghanaians.

“Profitable enterprises must also meet their dividend obligations. The returns on public investment ultimately belong to the people of Ghana,” he said.

The President acknowledged that enterprises could retain some earnings, but said such decisions must be supported by credible investment plans that would strengthen their operations and create long-term value.

He also directed boards to scrutinise major expenditures and establish whether they were necessary, economical and consistent with their institutions’ mandates.

Mr Mahama said executive compensation should be tied to the financial and operational performance of state enterprises.

“High-performing public enterprises and their leaders should be appropriately recognised, but poor performance cannot be continually rewarded without consequences,” he said.

“It is not fair to your shareholders to have salaries and allowances systematically increased even in chronically loss-making enterprises.”

The warning comes as the combined financial position of state-owned enterprises shows a sharp improvement.

According to figures presented by the President, SOEs moved from an aggregate net loss of GH¢2.26 billion in 2024 to a net profit of GH¢19.8 billion in 2025.

Their combined revenue increased from GH¢137.71 billion to GH¢176.43 billion during the same period.

But Mr Mahama cautioned that the figures did not necessarily reflect stronger underlying operations across the sector.

He said approximately GH¢11.72 billion in net foreign exchange gains and a 42.5% reduction in aggregate finance costs contributed to the turnaround.

“Our task is therefore to convert this favourable financial relief into sustained operational efficiency and stronger underlying performance,” he said.

“A one-year turnaround is encouraging, but sustained performance is the real test.”

The President cited Tema Oil Refinery, Ghana Water Company Limited, the Ghana Cocoa Board, BOST and GoldBod among state enterprises that recorded improved financial results in 2025.

Tema Oil Refinery moved from a net loss of about GH¢745 million to a net profit of GH¢1.09 billion, while Ghana Water Company shifted from a GH¢3.06 billion loss to a profit of approximately GH¢635 million.

The Ghana Cocoa Board moved from a loss of GH¢5.73 billion to a profit of GH¢5.11 billion.

BOST increased its net profit from about GH¢398 million to GH¢684 million, while GoldBod recorded approximately GH¢896.5 million, compared with GH¢178.5 million in 2024.

Despite these gains, Mr Mahama said five SOEs recorded losses in every year between 2021 and 2025. Other state entities posted a combined deficit of approximately GH¢10.48 billion in 2025.

He warned that boards and executives would be assessed against defined financial, operational, governance and development targets.

Persistent underperformance, he said, would trigger corrective action and possible leadership changes.

Mr Mahama also reminded board members that their appointments were not ceremonial and called for a clear separation between board oversight and daily management.

“These assets do not belong to any government, a board or a chief executive,” he said. “They belong to the people of Ghana. And you and I hold them only in trust for the people.”