IMF warns political appointments could weaken SOE boards

The International Monetary Fund (IMF) has cautioned that the practice of appointing active politicians to the boards of Ghana’s State-Owned Enterprises (SOEs) may compromise corporate governance, accountability, and oversight of these entities. This warning is found in the IMF’s July 2026 Technical Assistance Report, "Advancing SOE Fiscal Risks Management, Financial Oversight, Governance, and Investment Implementation."

According to the report, while Ghana has a legal framework for merit-based appointments, the board selection process for major SOEs remains highly centralized, with a significant influence resting with the Presidency. The IMF specifically highlighted the Ghana Ports and Harbours Authority (GPHA), whose newly formed 10-member board is chaired by the national chairman of the ruling party.

Additionally, the Volta River Authority (VRA) is mentioned, where prominent politicians sit alongside technocrats and a traditional leader.

The report underscores that in practice, the boards of major SOEs are dominated by political appointees, with board chairs often being ministers, parliament members, or influential party officials. This appointment structure, the IMF warns, could undermine the independence of SOE boards, particularly since boards can influence but do not ultimately control the tenure of chief executives.

Consequently, this could discourage boards from challenging management decisions and create incentives for CEOs to prioritize political principals over the boards overseeing their performance.

The IMF is therefore advocating for the implementation of formal, transparent, and merit-based procedures for appointing SOE board members and chief executives, along with the establishment of clear competency profiles and standardised vetting processes.