Ministry of Public Enterprises Announces Plan to Dispose of 17 Defunct State-Owned Enterprises

In a bid to streamline its public enterprises portfolio and reduce financial burdens on the state, the Ministry of Public Enterprises has revealed plans to dispose of 17 defunct state-owned enterprises. The list includes prominent entities such as the State Construction Company, Bonsa Tyre Factory, and Bolgatanga Meat Factory, among others.

During a press conference held on Wednesday, Joseph Cudjoe, the Minister for Public Enterprises, emphasized that these enterprises have become liabilities rather than assets, causing substantial financial losses to the government. Cudjoe expressed concern over the increasing costs incurred by the government to maintain these defunct entities, which are also at risk of asset vandalism.

The Disturbing Situation

“We have 17 defunct entities that the government is taking steps to dispose of. The problem now is that the government is just incurring costs to take care of them while others are just vandalizing assets. This is a disturbing situation as far as our public enterprises’ portfolio is concerned,” stated Minister Cudjoe.

The Impact on Public Purse

The Ministry’s review of these companies confirmed their detrimental impact on the country’s finances. In response, the government intends to pursue various strategies to address the issue. One such plan involves listing some of these defunct enterprises on the stock market, with the aim of attracting investors who can revive them.

“They are just siphoning money from the government’s purse, and they are just becoming liabilities rather than assets. Some, upon review, we intend listing on the stock market to get the investing public to have equity stakes in them. So, it’s like a cleanup of the portfolio so that we can focus on those that are active, invest in them, help them grow, and generate jobs for the good people of Ghana,” explained Minister Cudjoe.

The Move to Attract Investors

The move to attract investors through stock market listings aligns with the government’s broader objective of revitalizing the active enterprises within the portfolio and transforming them into profitable ventures. By divesting the defunct entities and injecting capital into the active ones, the Ministry aims to stimulate economic growth and create employment opportunities for the citizens of Ghana.

The Ministry of Public Enterprises is determined to navigate this cleanup process efficiently, ensuring that the disposal and potential revival of these enterprises are executed in a transparent and responsible manner. With a clear focus on restructuring and revitalization, the government anticipates positive outcomes that will contribute to the long-term stability and prosperity of Ghana’s economy.

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