2016 REPUBLIC OF GHANA MINISTRY OF FINANCE, GHANA SOE ANNUAL AGGREGATE REPORT Table of Contents ACRONYMS ..................................................................................................................................................................................................... 2 ACKNOWLEDGEMENT ..................................................................................................................................................................................... 3 FOREWORD ..................................................................................................................................................................................................... 4 STATEMENT FROM EXECUTIVE CHAIRMAN, STATE ENTERPRISES COMMISSION (SEC) .................................................................................. 5 EXECUTIVE SUMMARY .................................................................................................................................................................................... 6 1 INTRODUCTION ...................................................................................................................................................................................... 7 2 OVERVIEW OF THE SOE SECTOR ............................................................................................................................................................ 8 3 CONTRIBUTION OF THE SOE SECTOR ..................................................................................................................................................... 9 3.1 GoG Equity Investments in SOEs ......................................................................................................................................................................... 9 3.2 Fiscal Support to the SOE Sector ......................................................................................................................................................................... 9 3.3 Contingent Liabilities and On-Lending Loans ...................................................................................................................................................... 9 3.4 Transfer of Dividend and Surpluses to GoG ...................................................................................................................................................... 10 3.5 Timely Submission of Audited Accounts ........................................................................................................................................................... 10 4 ANALYSIS OF INDIVIDUAL COMPANIES ................................................................................................................................................ 12 4.1 Volta River Authority ......................................................................................................................................................................................... 12 4.2 Bulk Oil Storage and Transportation Company ................................................................................................................................................. 13 4.3 Tema Oil Refinery (TOR) .................................................................................................................................................................................... 14 4.4 Ghana Grid Company (GRIDCo) ......................................................................................................................................................................... 15 4.5 Electricity Company of Ghana Limited .............................................................................................................................................................. 16 4.6 Ghana National Petroleum Corporation ........................................................................................................................................................... 17 4.7 Ghana Ports and Harbours Authority ................................................................................................................................................................ 18 4.8 PSC Tema Ship Yard (PSC) ................................................................................................................................................................................. 19 4.9 Ghana Airport Company Limited ....................................................................................................................................................................... 20 4.10 Ghana Cocoa Board (COCOBOD) ....................................................................................................................................................................... 21 4.11 Ghana Water Company Limited (GWCL) ........................................................................................................................................................... 22 4.12 GIHOC Distilleries Company Limited ................................................................................................................................................................. 23 4.13 Graphic Communications Group Ltd ................................................................................................................................................................. 24 4.14 TDC Development Company Limited ................................................................................................................................................................ 25 4.15 Precious Minerals Marketing Company (PMMC) .............................................................................................................................................. 26 4.16 Volta Aluminium Company Limited ................................................................................................................................................................... 27 4.17 Ghana Reinsurance Company Limited .............................................................................................................................................................. 28 4.18 National Investment Bank (NIB) ........................................................................................................................................................................ 29 5 CORPORATE GOVERNANCE REFORMS ................................................................................................................................................. 31 5.1 Background ....................................................................................................................................................................................................... 31 5.2 Why Corporate Governance? ............................................................................................................................................................................ 31 5.3 Corporate Governance Reforms Strategy ......................................................................................................................................................... 32 5.4 Implementation of SOE Corporate Governance Reforms Strategy ................................................................................................................... 33 6 FINDINGS AND CONCLUSIONS ............................................................................................................................................................. 34 6.1 Financial Performance....................................................................................................................................................................................... 34 6.2 Financial Reporting............................................................................................................................................................................................ 34 6.3 Governance of the SOEs Sector ......................................................................................................................................................................... 35 ANNEXES ....................................................................................................................................................................................................... 36 Annex 1: List of Companies with Government Equity ..................................................................................................................................................... 36 Annex 2: List of Indicators Monitored under SEC’s Performance Contract System ......................................................................................................... 39 1 ACRONYMS ADB Agricultural Development Bank AGM Annual General Meeting BD Budget Division BOST Bulk Oil Storage and Transportation Company Limited BRT Bus Rapid Transit CAGD Controller and Accountant-General’s Department DMD Debt Management Division ECG Electricity Company of Ghana GAPTE Greater Accra Passenger Transport Executive GAS Ghana Audit Service GCGL Graphic Communications Group Limited GHS Ghana Cedi GNPC Ghana National Petroleum Corporation GPHA Ghana Ports and Harbours Authority GoG Government of Ghana GOIL Ghana Oil Company Limited GCGL Graphic Communications Group Limited GRIDCo Ghana Grid Company Limited GWCL Ghana Water Company Limited JVC Joint Venture