The Auditor-General of Ghana, Dr Pamela Graham, has emphasized the importance of early intervention in saving distressed enterprises. She made this call at the launch of the Chartered Institute of Restructuring and Insolvency Practitioners (CIRIP) Ghana’s 20th anniversary celebration in Accra. Dr Graham urged State-Owned Enterprises (SOEs) and other public entities to seek professional restructuring support at the early stages of financial or operational distress. This, she believes, will prevent the loss of economic value and enable distressed entities to identify their financial and operational challenges.
According to Dr Graham, early intervention would allow distressed entities to develop appropriate turnaround strategies. She noted that financial difficulties should not automatically be treated as the end of an enterprise. Instead, she stressed that early intervention and professional advice could make the difference between business collapse and recovery. Dr Graham also urged public institutions to regard restructuring and insolvency professionals as strategic partners who could help stabilise operations, restructure distressed entities, and preserve value before it was too late.
The Auditor-General emphasized that building strong institutions required more than holding leaders accountable after problems had occurred. She said government systems and professional support must be put in place to identify and manage risks early. This would allow boards, management, and government to engage technical experts while value could still be preserved. Dr Graham’s comments were made under the theme, “Rescue, reform, renewal – CIRIP at 20: Leading business restructuring and future economic growth in Ghana.”
Professor Emeritus Nana Ato Ghartey, the former Controller and Accountant-General, also spoke at the event. He called for Ghana’s economic policy discussions to move beyond economic growth and focus more broadly on economic development and improvements in the quality of life of citizens. Professor Ghartey noted that economic growth largely focused on increases in economic output over a given period. However, economic development encompassed broader issues, including access to necessities, fair remuneration, sanitation, water, and other social services.
Professor Ghartey argued that Ghana’s efforts to expand its revenue base should be accompanied by tangible improvements in the living conditions of ordinary citizens. He noted that the country had, over the years, witnessed an expansion of taxes and other revenue measures. However, citizens should see corresponding improvements in the services and conditions they received. This includes the quality of public services, such as healthcare, education, sanitation, water supply, and transportation.
The Professor urged policymakers to ensure that revenue mobilisation was linked to effective public spending and the delivery of essential services. He stressed that economic policies should not be assessed only by indicators such as Gross Domestic Product (GDP) growth. Instead, policymakers should also consider whether households were able to afford necessities and enjoy improved living standards. This, he believes, would provide a more comprehensive picture of the impact of economic policies on citizens.
The event marked a significant milestone for CIRIP Ghana, which has been leading business restructuring and insolvency practices in the country for 20 years. The Auditor-General’s call for early intervention and Professor Ghartey’s comments on economic development highlight the need for a more comprehensive approach to economic growth and development in Ghana. By prioritizing early intervention and effective public spending, Ghana can work towards achieving sustainable economic growth and improving the living standards of its citizens.
Key points
- Early intervention can prevent loss of economic value in distressed enterprises.
- Economic policies should prioritize improvements in the quality of life of citizens.
- Revenue mobilisation should be linked to effective public spending and delivery of essential services.
