President John Dramani Mahama has expressed skepticism over the financial struggles of GIHOC Distilleries Company Limited, citing strong local demand for alcoholic beverages. Addressing workers at the May Day parade in Accra, Mahama questioned how the company could incur significant losses despite its products being in high demand.
Referencing recent reports, Mahama noted that GIHOC Distilleries recorded financial losses in both 2022 and 2023, with losses totaling GH₵50.6 million. He expressed surprise at the company’s financial situation, stating that Ghanaians often consume alcohol whether they are happy or sad, making it puzzling that the company is not profitable.
Mahama attributed the situation to potential mismanagement and called for stronger accountability within state-owned enterprises. He highlighted the need for effective management to ensure the financial health of such companies. The President’s remarks come after Finance Minister Dr. Cassiel Ato Forson disclosed the company’s financial losses during a meeting with state-owned entity chief executives.
Mahama’s comments have raised concerns about the financial management of state-owned companies and the need for reforms to ensure their sustainability. The issue highlights the challenges faced by state-owned enterprises in Ghana and the importance of effective governance and management to ensure their success.
Ruth Abla ADJORLOLO
