IMF Flags SOEs Board Politicisation

The International Monetary Fund (IMF) has expressed concerns over the politicization of boards and chief executive appointments at Ghana's State-Owned Enterprises (SOEs). According to the IMF Technical Assistance Report, SOE boards are predominantly composed of political appointees, often including ministers, Members of Parliament (MPs) or influential party officials.

This departure from the Organisation for Economic Co-operation and Development (OECD) guidelines, which discourage active politicians from serving on SOE boards, has raised red flags. The IMF notes that while Ghana is in the process of developing a more structured, merit-based nomination framework for SOE boards and CEOs, the framework remains in its early stages.

Currently, SOE chief executives and managing directors are typically appointed by the President, often in consultation with the relevant minister, rather than through a competitive process and board selection. This political appointee system undermines the accountability link between board oversight and management performance, potentially disheartening boards from challenging management.

The IMF also highlighted the lack of clear merit-based criteria, competency profiles, or standardised vetting procedures in some SOE appointments, increasing the risk of politicisation and weakening accountability. The IMF calls for strengthening appointment processes in line with international best practices, such as publishing competency frameworks for directors, using open or professional search processes, and disclosing board skills composition.

Despite recent reforms by Ghana's State Interests and Governance Authority (SIGA), the agency still faces challenges in finding adequately skilled and experienced candidates, particularly in technical sectors. The IMF urges the government to encourage SOE board members to partake in structured corporate governance training to enhance oversight, improve decision-making, and boost financial performance.