I have listened to various comments made by callers on early morning shows discussing the daily news from Ghana. I must say it is usually an interesting mix of ideas – some relevant and others way off point. Unfortunately, I have not been able to contribute to this discussion because of the long drive I have to get to work.

I have decided to use this outlet instead to air my view ie. my little contribution.

A lot has been said about the pros and cons of privatisation of Ghanaian companies and, personally, I would without doubt opt for privatisation in companies like Ghana Airways, Ghana Water Company, and Ghana Railways Corporation to name only three.

I have worked in a government company as well as a private company and I believe I am in a position to be able to compare the working conditions under both setups.

Let us start with the collapse of a company like the erstwhile national shipping company - the Black Star Line.There was too much interference in the running of the company from various quarters and like the old adage goes – everybody’s business is nobody’s business. Various government agencies used the services of this shipping line and did not re-imburse the company because the cargo was carried on behalf of these other government agencies. Obviously, the management should shoulder the blame for the company’s eventual collapse because they could have insisted on the survival of the company by keeping all dealings with other government-owned agencies which used their services, above board to ensure accountability.

Every company in business is required to at least break even if it cannot make profit. It has to justify its existence by making profit as investors would not want to see their assets go down the drain. Apart from the land-based expenses such as office space, wages, administration etc., the ships have to be run of fuel, water, port dues, agency fees etc not to mention the crew’s food and wages. Some of these expenses have to be paid for upfront before services are delivered. You look round the world and realise that most of the national-owned shipping companies have gone under or are struggling to survive. Our counterparts in Nigeria also failed in this endeavour because of mis-management, nepotism and over-staffing.

Imagine a government shipping company setting freight rated for the carriage of cargo from point A to point B. The privately-owned company can easily make the decision to under-cut these rates to gain the contract for the carriage of the cargo. For a government-owned to conclude the decision to alter freight rates, it requires a lot of protocol lest some-one be accused of trying to pocket the difference. Time is money and the shipper cannot sit down and twiddle his thumbs while waiting for the government to make decisions. The solution will be obvious – the private owned company will win the contract hands down.

A second common advantage the private company has over the government is the entertainment of shippers to attract business. The government official will not have the same resources available to his counterpart in the private sector.

Thirdly,  a government official may not think of the government or company when making certain decisions because they have the false sense of security that the government will always pump in resources to keep them in their jobs.

With just these three examples, I can foresee Ghana Airways heading for the axe.

It is a shame that some people are going to lose their jobs. Without trying to sound heartless,

every business needs to review its modus operandi regularly to identify where improvements can be made and the necessary actions taken - some of which may not be in the immediate interest of the workers.

I know of a national shipping company of a third world country in South-East Asia which has arrived at a solution I greatly admire. The government owns 51% of the shares in the company and has privatised the remaining 49%. The government does not play any active part in the day-to-day running of the company but has rather given complete control of the company to the minority share holders. In that way, the government gets 51% of the profits and also taxes accruing from the 49% belonging to the shareholders. To be on the safe side, the government appoints its auditors to regularly review the accounts of the company. A brilliant idea.

Having said that, should the government require carting any cargo, it will source out for the cheapest available freight rates on the market and will not rely on any privileges it would have expected from the company just because it owns the majority share. Typical no interference policy.

In conclusion, I think a lesson can be learnt from the above-mentioned examples when it comes to the privatisation of Ghana Airways, Ghana Railway Corporation and Ghana Water Company.

Thank you for the having the patience to read this contribution. God Bless you.