IMF warns political appointments could weaken SOE boards

The International Monetary Fund (IMF) has warned that the continued appointment of active politicians to the boards of Ghana’s State-Owned Enterprises (SOEs) could weaken corporate governance, accountability and effective oversight of the entities.

The warning is contained in the IMF’s July 2026 Technical Assistance Report, “Advancing SOE Fiscal Risks Management, Financial Oversight, Governance, and Investment Implementation”.

The report says that although Ghana’s legal framework provides for merit-based appointments, the selection of boards of major SOEs remains highly centralised, with significant influence resting with the Presidency.

The IMF specifically cited the Ghana Ports and Harbours Authority (GPHA), whose newly inaugurated 10-member board is chaired by the national chairman of the governing party. It also pointed to the Volta River Authority (VRA), where prominent politicians serve alongside technocrats and a traditional leader.

“In practice, boards of major SOEs are largely dominated by political appointees, with board chairs frequently being ministers, members of parliament, or prominent party officials,” the report said.

The Fund further warned that the appointment structure could undermine the independence of SOE boards, particularly because boards may influence the tenure of chief executives but do not ultimately control their appointments.

It said this could discourage boards from challenging management decisions and create incentives for CEOs to respond more to political principals than to the boards overseeing their performance.

The IMF is therefore calling for formal, transparent and merit-based procedures, clear competency profiles and standardised vetting for the appointment of SOE board members and chief executives.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.