Mahama bans foreign travel by SOE boards over public spending concerns

President John Dramani Mahama has directed that boards of state-owned enterprises (SOEs) and other public institutions should immediately stop undertaking international travel for training programmes, conferences, retreats, and study tours at the expense of the state.

The directive was contained in a letter issued by the Office of the President dated March 5, and addressed to all sector ministers supervising SOEs and public institutions.

According to the Presidency, the decision follows increasing concern about the increasing number of international trips undertaken by boards of public institutions and the rising costs associated with such travels.

The letter noted that although government recognises the importance of training, exposure to international best practices, and stronger corporate governance, the frequency and scale of these trips have raised questions about prudent use of public funds.

“In several instances, such travels have resulted in significant expenditure on airfares, accommodation, per diems and associated logistics, placing avoidable pressure on the public purse,” the statement said in part.

Under the new directive, boards of SOEs and public institutions are barred from undertaking international travel funded directly or indirectly by public resources.

However, the Presidency indicated that exceptions may be granted if a board considers an international engagement absolutely necessary and it cannot be done locally or virtually.

In such cases, the institution must submit a formal request through the sector minister to the Chief of Staff at the Office of the President for approval by President Mahama.

The request must include a detailed justification outlining the purpose of the trip, expected outcomes, strategic relevance to the institution’s mandate, number of participants, estimated cost, and reasons the engagement cannot be conducted locally or virtually.

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