The Director-General of the State Interests and Governance Authority (SIGA), Professor Michael Kpessah-Whyte, has warned that Ghana’s political financing system continues to influence how State-Owned Enterprises (SOEs) are run, calling for urgent reforms to address the challenge.

Speaking on Joy FM’s Super Morning Show, Prof. Kpessah-Whyte said while the current system of appointing SOE leaders is lawful, it is shaped by broader political realities that cannot be ignored.

“The prerogative is given to the President to appoint CEOs and boards, and this has been done lawfully and ethically,” he explained, adding that many of those appointed are qualified.

However, he acknowledged that the political system itself creates pressure on officeholders to reward supporters.

Kpessah-Whyte said reform is necessary or the political process we have designed for ourselves will continue to eat us up,” explaining that people mobilise resources, fund campaigns to win power, and we cannot we expect them to jettison the expectations of those who supported them.

According to him, the root of the problem lies in the lack of structured public financing for elections, which leaves politicians to rely on private resources and networks.

“The state does not fund the electoral process in a way that removes this burden. Yet, after elections, we expect leaders to ignore the expectations of those who supported them,” he noted.

Prof. Kpessah-Whyte stressed that this issue has persisted across successive governments, regardless of political party, leaving us to complain under virtually all the different administrations.

He insisted that the problem is systemic.

“The question we should ask ourselves is, why have we complained under Rawlings? Why have we complained under Kufuor? Why have we complained under Atta Mills? Why have we complained under Nana Akufo-Addo? And why will we likely complain even under current administration of which I'm a member?”

He revealed that steps are already being taken to address these concerns through ongoing constitutional review processes.

“The President has set up a constitutional review committee, and some of these issues are already being considered. Hopefully, this will provide a framework to resolve them,” he added.

On improving SOE performance, Prof. Kpessah-Whyte emphasised the need for strict adherence to existing rules and operational reforms.

“Reform is key. We must ensure compliance with statutory obligations, including timely financial reporting. When institutions know they will be scrutinised, it encourages better performance,” he said.

He expressed optimism that with improved compliance and reforms, some SOEs could return to profitability and even declare dividends in the near future.

“If people adhere to the rules that govern their operations, we will see significant improvements,” he stated, indicating that some of the recent reforms are already showing results as some recent loss-making SOEs are making showing signs of a turnaround.