Manasseh Azure clarifies controversy over SOE profits, surpluses

Journalist Manasseh Azure Awuni has offered additional clarification on the reported profits and surpluses of State-Owned Enterprises (SOEs) following the release of the State Ownership Report for 2025. After initially calling for clarity on the figures, Mr Awuni engaged an official from the State Interests and Governance Authority (SIGA) to gain a better understanding of the reported numbers.

His primary concern was the possible association of subvented SOEs with the reported profitability, despite the distinction between profits and surpluses.

Awuni had previously highlighted several SOEs that had performed exceptionally well, and was not surprised by the overall performance reported by SIGA. However, he noted that foreign exchange gains had been a significant contributor to the profitability of the SOEs. He believed that the confusion surrounding the topic stemmed from subvented SOEs attempting to capitalize on the positive public reaction to the reported profitability.

During his discussion with the SIGA official, Awuni learned that surpluses recorded by subvented SOEs were not included in the profits declared by SIGA. The official clarified that these surpluses should not be automatically interpreted as evidence of exceptional performance by the chief executives or management of the organizations. In some cases, such surpluses could indicate underperformance, such as underfunding, failure to complete planned activities, or delayed payments to beneficiaries.

Awuni used the Youth Employment Agency (YEA) as an example to illustrate the point. The SIGA official explained that if the YEA declared a surplus, it did not necessarily mean an achievement. It could simply mean that the agency had not disbursed all the funds allocated to it by the government within the year, due to reasons such as late disbursement or delays in paying beneficiaries. Awuni emphasized that a surplus should not be equated with profit or financial gain, as the official's explanation made clear.