By Amoako Kwame
Deputy Minister of Finance, Thomas Ampem Nyarko, has announced that state-owned enterprises (SOEs) recording losses will no longer be allowed to pay bonuses to management or staff, as part of efforts to enforce stricter financial discipline.
Speaking at the SIGA 2026 Awards Conference on March 19, 2026, he delivered a firm message to heads of state entities: “Deliver or be dissolved.”
The Deputy Minister expressed concern over the practice of loss-making entities awarding significant financial incentives to their leadership, describing it as illogical and a drain on national resources.
“It does not make sense that you will make losses and pay big bonuses to yourselves. That must stop. No SOE that makes losses must pay bonuses to management and staff,” he said.
He acknowledged the need to motivate staff but stressed that rewards must be tied to performance and profitability.
“Strive and make money and take a small portion to motivate yourselves,” he urged. “But when you make losses, do not reward yourselves for making losses.”
Mr Ampem Nyarko added that while the state remains committed to supporting SOEs, such support must be matched with responsibility.
“Partnership is reciprocal. Support from the state must be matched by responsibility to the state,” he said.
The announcement signals a policy shift aimed at addressing the persistent financial underperformance of many state entities. With the warning that underperforming SOEs could face dissolution, the pressure is mounting on them to improve efficiency or undergo restructuring.
