By Kwabena Adu Koranteng
In the heart of Accra, it is not uncommon to see convoys of sleek, fuel-guzzling SUVs—Toyota Land Cruisers, V8s, and other high-end vehicles—navigating perfectly paved city roads.
These are not the private vehicles of wealthy entrepreneurs or multinational executives. They belong to public servants: Chief Executive Officers and deputies of Ghana’s state-owned enterprises (SOEs).
Many of these institutions, ironically, are running at a loss or are heavily indebted. Yet, their leaders continue to enjoy a lifestyle more suited to profitable ventures than to public institutions barely surviving on government subventions.
This phenomenon is not just wasteful—it is a policy failure. At a time when Ghana is grappling with mounting debt, youth unemployment, and the rising cost of living, the continued indulgence in luxury by public officials at the expense of taxpayers is unacceptable. It sends a dangerous message: that leadership in public service is about privilege, not performance.
The Accountability Gap
SOEs in Ghana, ranging from utility providers to transportation and logistics firms, have long suffered from inefficiency, political interference, and mismanagement.
Despite repeated reforms, many remain perennial drains on the national budget. Yet, rather than implementing austerity or performance-based leadership, the state has tolerated, and in some cases encouraged, a culture of entitlement at the top.
Executives enjoy high salaries, travel allowances, and perhaps most controversially, luxury SUVs under the guise of operational necessity.
In reality, most of these vehicles are used within cities, where simpler, more affordable cars would suffice. The rationale behind these purchases—off-road capability, status, or comfort—fails to align with Ghana’s current economic realities.
A Question of Priorities
Every cedi spent on the maintenance, fuel, and purchase of these vehicles is a cedi not spent on health, education, infrastructure, or job creation. In essence, the state is subsidizing extravagance while communities struggle for basic services.
This misalignment between leadership benefits and institutional performance reveals a fundamental flaw in how public sector executives are evaluated and held accountable.
Where is the justification for such benefits when the institutions they lead are not generating returns? In the private sector, such a mismatch would be intolerable.
Poor performance would result in restructuring or dismissal. But in Ghana’s public sector, non-performing CEOs often remain insulated by political connections and weak oversight.
The Way Forward
This crisis demands more than moral outrage—it requires decisive policy reform. The following steps are essential:
- Performance-Based Contracts: SOE executives must be placed on contracts that tie renewal and compensation directly to measurable performance indicators, including profitability, service delivery, and innovation.
- Rationalized Vehicle Policy: A national policy should limit the use of luxury SUVs in the public sector. Only officials whose roles require extensive travel in difficult terrain should be granted such vehicles. For urban-based work, cost-efficient alternatives should be mandated.
- Transparency and Disclosure: All SOEs should be required to publish annual reports detailing their financial health, executive compensation, and procurement expenditures, including vehicle purchases and maintenance.
- Parliamentary Oversight: Parliament must play a stronger role in reviewing and approving SOE budgets and benefits. This includes setting ceilings on vehicle costs and enforcing spending discipline.
- Consequences for Failure: Executives of consistently underperforming institutions must face consequences, including termination of contracts or legal scrutiny in cases of mismanagement.
Conclusion
Ghana cannot continue down a path where leadership is decoupled from accountability. Public office must not be a gateway to personal luxury, especially not when funded by citizens whose own lives are marked by hardship.
Reforming the culture of extravagance in our SOEs is not only an economic necessity—it is a moral imperative.
If Ghana is serious about fiscal discipline and national transformation, it must begin by holding its own institutions to the standards of responsibility it demands of its citizens.
Email: Korantengadu@gmail.com
Share Us
