The Minister for Public Enterprises, Joseph Cudjoe, has justified government’s intention to dispose of assets of 17 inactive State-Owned-Enterprises (SOEs) to save costs.
In responding to a question by Kwaku Dawuro on Movement In The Morning Show on why government wouldn’t revive such companies in other to rake in revenue, he explained that it’s the same government that is borrowing money elsewhere to construct roads, hospitals among other infrastructures so if government would revive such dormant companies which would later not rake in any revenue, what benefit would the country gain?
The Cabinet, he said, had already approved the processes for evaluation of the assets of the affected SOEs and within the next few months activities for disposal would begin.
He explained that a classic example is the Tema Oil Refinery- having been a former deputy minister for energy, he could say that it’s been very difficult getting investors for the refinery company. However, just a kilometer away there’s a private company building a refinery. This is a clear indication that investors have no interest in government businesses because they know the attitude of Ghanaians towards state-owned- enterprises.
“They will run it down because the money isn’t theirs and they have nothing to lose…because come what may government will still pay them at the end of the month”, he said.
“Government always provides GIHOC with loads of funds…how much returns are the company making? GIHOC produces only alcohol but always needs money. Have you seen any demonstration staged against shortage of alcohols?”, he asked.
He stressed that moreover these companies earmarked to be sold are not operational. They have been left to rot.