45 SOEs have not submitted any financial statements to the Ministry of Finance since 2016, in violation of Law 921 and international best practices.
These entities include a state-owned enterprise, 34 state-owned enterprises and 12 mixed companies.
However, 14 out of 129 SOEs and OSEs have complied with the requirement of Article 93 of Law 921 to submit quarterly reports on their operations against their approved business plan for 2018 to the Minister of the Sector.
They include Cocoa Processing Company, Drivers Vehicles Licensing Authority, Ghana Civil Aviation Authority, Ghana Cylinder Manufacturing Company, Ghana Re, GIFEC, Ghana Investment Promotion Center, Ghana Standards Authority, State Housing Company and Volta River Authority.
According to the report, only state-owned enterprises in the energy sector have complied with Article 77 of the Public Financial Management Law (Public Financial Management Law) which requires them to submit to the Minister on a basis quarterly, a statement of their outstanding debt and new borrowings, including overdrafts and debt securities issued.
Despite the generally low adherence among SOEs to the timelines required for submitting their financial and other audited operational information, the report says, there have been positive developments since this report’s inception in 2016.
First, report coverage has steadily increased due to improved responsiveness of entities to specified reporting obligations. The first edition in 2016, published in 2017, only covered 18 entities.
Second, some state-owned enterprises have cleared their backlog of unaudited financial statements, some of which date back several years. Notable mentions include Architectural Engineering Services Limited, Cocoa Processing Company, Electricity Company of Ghana, Ghana Cylinder Manufacturing Compnay, GIHOC, and Tema Development Corporation.
In addition, the quality of data used in financial analysis has also improved significantly over the years.