SOEs must hold AGMs, not just submit audited accounts – Deloitte Partner

Yaw Appiah Lartey, a lawyer and partner at Deloitte specializing in transactions, Africa infrastructure, and capital projects, has cautioned state-owned enterprises (SOEs) against merely submitting audited financial statements to comply with corporate governance requirements. While he acknowledges the positive development of an increase in the number of SOEs submitting audited accounts, Lartey emphasized the need for SOEs to adhere to proper governance processes.

He noted that the number of entities submitting audited financial statements rose significantly, from 53 in the previous reporting period to 108 in the latest report, which he described as a positive indication of progress in corporate governance. However, Lartey stressed that filing audited accounts is just one aspect of good corporate governance and that SOEs must also ensure their financial statements are properly scrutinized and approved through appropriate corporate structures, such as conducting annual general meetings.

He urged Sigaa and state-owned entities to focus on meeting not only reporting deadlines but also ensuring that accounts undergo thorough scrutiny and approval processes. His remarks come as there are ongoing discussions regarding Sigaa's latest State Ownership Report and efforts to enhance transparency, accountability, and corporate governance across Ghana's state-owned entities.

Lartey also argued that Sigaa's assessments should consider the distinction between commercially oriented organizations and institutions primarily established to provide public services, stating that the two categories require different performance measures.