The Ministry of Public Enterprises will from next month reward outstanding and deserving State-owned Enterprises at the annual Public Enterprise League Table (PELT) awards.
It follows the launch of the Public Enterprises League Table (PELT) aimed at ranking the performance of state entities thereby making them competitive and profitable.
The Public Enterprises League Table (PELT) is an innovation by the Minister for Public Enterprises to assess the performances of Specified Entities (SEs) regarding compliance.
A statement issued by the Ministry of Public Enterprise said a list of deserving SOEs will be published after their assessment in May.
PELT is being rolled out in collaboration with Ministry of Finance and the State Interest and Governance Authority (SIGA).
Below is the full statement
PRESS STATEMENT BY MINISTRY OF PUBLIC ENTERPRISE ON PELT
The Ministry for Public Enterprises, in collaboration with Ministry of Finance and the State Interest and Governance Authority (SIGA) on Friday 29th April, 2022, launched the Public Enterprises League Table (PELT) to encourage the public to see the assessment of Specified Entities (SEs) based on a league table it is developing.
The Public Enterprises League Table (PELT) is an innovation by the Minister for Public Enterprises (MPE) to assess the performances of Specified Entities (SEs) regarding compliance.
The PELT is mainly to create competition among the specified entities which includes the State Owned Enterprises (SoEs), Joint Venture Companies (JVCs) and Other State Entities (OSEs) as stipulated in the SIGA Law, ACT 990.
Other objectives of the PELT are to promote innovation in the management of the SEs to ensure organizations are not only profitable but also efficient, provide non-pecuniary incentives for improved performance, boost the stature of performing organizations, recognize/Award Chief Executive Officers (CEOs)/Managing Directors (MDs)/Director Generals and Boards of performing SEs as well as to provide a pathway for recommending the promotion of performing CEOs/MDs/DGs to be elevated to occupy similar positions in more prominent SEs.
Launching the PELT, Minister for Public Enterprises, Hon. Joseph Cudjoe, observed that, the initiative is to reward companies that are doing well and to encourage those that are not doing well to be provided with the necessary support to achieve or face the necessary sanctions.
According to him, it is also to provide peer learning and experience sharing opportunities as well as to encourage SEs to trade among themselves.
The Minister revealed that his appointment was to solve a 65 year old problem in the SE sector which has been characterized by high indebtedness, loss making, non-performance and in some instances, collapse.
Cudjoe pointed out that, the President, had tasked him to develop policies that will engender good performance from the SE sector to generate income for the economy and also make sure, there is industrial expansion and institutional growth to create jobs for the masses.
“Since 2017 however, the government of HE Nana Addo Dankwa Akufo Addo, has indicated clearly, its willingness to ensure that the mistakes of the past are dealt with effectively. Consequently, the many years of non-reporting, inefficient leadership and creating an opportunity for political sympathisers and supporters has come to an end”, he pointed out.
Cudjoe admonished the media not to outline only the challenges of the SEs but to contribute to making them vibrant, effective, efficient and profitable because they constitute about a third of the total economy of the country.
“This is not the type of league table that will relegate the last person. When you are at the bottom, it would mean that we should spend more resources in terms of time, training and attention on you to enable you perform better. The PELT, would become the platinum standard for specified entities which are doing well”, Cudjoe noted.
For his part, Ambassador Edward Boateng, Director General of SIGA, indicated that the PELT, is a good measuring tool which will assist the efforts to encourage the improvement in the performance of SEs.
“This initiative, we hope will enable our specified entities contribute about 30% minimum to our GDP. SEs control about 50% of our national assets.
As we speak now, their contribution to GDP is quite low and our target is to raise it to about 30% to help improve our national fiscal space. We hope that this award will inspire them to grow for us to meet the target. For them doing more will help us generate the needed income to build our country”, the DG held.
The DG emphasized that PELT will be based on the performance evaluation in the Performance Contract the specified entities sign with the SIGA to ensure compliance to the provisions in the contract.
It also offers the opportunity to rank the SEs by the negotiated and agreed indicators and present in the League Table Form.
Furthermore, it is designed as an add-on feature of the assessment tool for the post evaluation of SEs, pursuant to the Performance Contract Implementation, which provides MPE, SIGA and the Ministry of Finance (MoF) with the measurable indicators to conduct a peer ranking exercise to achieve its mandate
The resultant PELT is to be published and deserving SEs awarded during the Annual PELT Awards Programme which has been slated for the 27th of May 2022.