President John Dramani Mahama has expressed shock over the continued financial woes of GIHOC Distilleries Company Limited, questioning how a company producing alcoholic beverages—a product with strong local demand—could incur such staggering losses.
Speaking at the May Day parade at Independence Square in Accra on Thursday, May 1, President Mahama described the development as emblematic of the broader crisis of mismanagement affecting several state-owned enterprises.
“How can you sell alcohol and be in debt?” Mahama asked the crowd. “When I was president, GIHOC was making a profit. Because Ghanaians, when we are happy, we drink alcohol; when we are sad, we drink alcohol. So how can an alcohol manufacturing company make losses?”
Mahama’s comments follow recent revelations from Finance Minister Dr Cassiel Ato Forson, who disclosed that GIHOC Distilleries recorded GH¢25.1 million in losses in 2022 and an even higher GH¢25.5 million loss in 2023. These figures were revealed during a March 13 meeting with chief executives of state-owned enterprises under the supervision of the State Interest and Governance Authority (SIGA).
The former president used the opportunity to underscore the urgent need for improved corporate governance and greater accountability in Ghana’s state enterprises.
“This is a company that should be thriving, not collapsing. It’s not a matter of market failure—it’s a failure of leadership, of systems, and of oversight,” he said.
GIHOC Distilleries is one of Ghana’s oldest and most well-known beverage producers, with a product line that includes popular spirits and liquors consumed nationwide. Despite its brand recognition and demand, critics say political interference, procurement issues, and poor financial management have plagued the company in recent years.
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