An Analysis of Government Intervention in Management of State-owned Enterprises in Ghana: A Case of Selected State-owned Enterprises in Sunyani Municipality, Ghana

Abstract

This study was conducted to analyze government intervention in the management of state-owned enterprises of some selected state-owned enterprises in Sunyani municipality, Ghana using a survey study design. Using the quantitative research design, a structured questionnaire was the main instrument to obtain data from 228 respondents from the estimated 1394 population. SPSS was used to analyze the data.

The study discovered that the management strategies in state-owned enterprises include supervision of operations by the Ministry, application of natural monopoly strategy, addressing of equity concerns strategy, and procedures for continuing government projects. It again found that the competencies of managerial staff of the selected state-owned include:

• The ability to decide on the day-to-day running,
• The ability to take their own decision regarding the operations,
• The ability to implement government policies without any challenges, Prerequisite skills to ensure financial and strategic oversight of the SOE,
• The ability to implement physical controls in the SOE to reduce theft and wastage,
• The ability to implement controls over supply purchases and product sales, and
• The ability to ensure that the SOEs worked within the annual budget

The study also revealed that the government intervention strategies at the selected state-owned enterprises include:

• Privatization intervention strategies,
• Liquidation intervention strategies,
• Divestiture intervention strategies,
• Physical and financial rehabilitation intervention strategies,
• Management and performance contracts intervention strategies, Divestiture intervention strategies, and
• Institutional change contracts intervention strategies

Finally, it turned out that government interventions in state-owned enterprises were not effective.

The study recommended that management of SOEs should include key management strategies such as the use of capital market failures strategy, ensuring continuity of government projects after a change of government, putting strategies in place to ensure accountability after the change of government, and lack of legal conditions that bind the government to continue old projects.

The study also recommended that the managerial staff of SOEs develop competencies in areas such as the ability to influence government decisions on issues regarding the SOEs and make concrete decisions to address the challenges facing SOEs appropriately.

Again, the study recommended that vital government intervention strategies such as continuity in government policy intervention after the change of government occur and management incentives the government should employ intervention strategies to enhance the growth and development of SOEs. The study recommended that, among others, the government should develop policies that strengthen the continuity of government projects in SOEs to ensure general growth and development.