Appointment of party loyalists is cause of poor performances of SOEs – Leadership Consultant

Change Management and Leadership Consultant, Dr. Victor Abbey has blamed the lapses in the performances of State Owned Enterprises (SOEs) to poor corporate governance practices such as the appointment of party loyalists and cronies to boards and Chief Executive Positions of State Owned Enterprises.

He explained on 3FM Sunrise Morning Show that, competence is different from leadership capabilities, hence one can be technically competent but lacks leadership skills. It is therefore important to take the heads of SOEs through leadership training to equip them with the necessary leadership skills.

The Leadership consultant also pointed out that some of the SOEs are compelled by the circumstances of the appointment of their Chief Executive Officers or Managing Directors to divert some of their budget to fund political party activities or activities of their appointing authorities.

“It is an unspoken truth that there is so much demand on some of these state owned enterprises to support political activities here and there. They engage in these wasteful expenditures to make sure they please their appointing authority in order to maintain their jobs. How do you then expect the budget that is supposed to be used for the running of the enterprises to be diverted in this way and not make losses?” he alleged.

His comments come on the back of President Akufo-Addo’s directives to the Board Chairs of State Owned Enterprises to check the infractions and losses in the operations of their enterprises.

According to Dr. Abbey, Key Performance Indicators (KPIs) should be clearly given to the employees especially the Chief Executives and the Board itself to measure their performances. Those who fall short of the standards must be disengaged and more competent people employed.

He again proposed that critical audit procedures should be instituted in the operations of the public sector organizations. However he was of the view that, SOE’s can still discharge their service of public good and still make profit.

Dr. Victor Abbey again charged the government and other state institutions to pay for the services they receive from other State Owned Enterprises.

Source: 3news.com|Ghana