Former Power Minister and three-term Member of Parliament, Dr. Kwabena Donkor, has strongly criticized the excessive staffing and poor management of Ghana’s State-Owned Enterprises (SOEs), arguing that the lack of efficiency is hindering their profitability.
Speaking on Morning Starr with Naa Dedei Tettey, he expressed frustration over the culture of employing individuals without a clear business case, which, in his view, has significantly contributed to the struggles of these institutions.
“In business, if you are running a company, there must be a business case for every additional employee. What value is that employee bringing? How does that affect the bottom line? We don’t do that,” he said.
Dr. Donkor cited GIHOC Distilleries as an example, questioning the rationale behind its recent employment increase.
“At a parliamentary committee hearing, GIHOC Distilleries proudly reported that they had increased employment by about 50%.
“I had to ask them if they were running the Youth Employment Agency (YEA), because in a commercial enterprise, jobs should only be created based on business needs, not for the sake of employment,” he remarked.
Beyond staffing concerns, he pointed out the guaranteed salaries for executives, which, he believes, discourage performance-based accountability.
“There is a certainty of a huge monthly salary for executives, whether the company is making losses or not. That becomes a disincentive for hard work,” he explained, stressing that salary structures should be tied to performance rather than being fixed.
Dr. Donkor further highlighted the stark contrast between the private sector and SOEs, emphasizing the lack of innovation and weak leadership in state enterprises.
“The private sector thrives on efficiency and accountability. In contrast, our SOEs have weak leadership structures, little innovation, and a culture of entitlement that stifles productivity,” he stated.
