SIC-FSL slashes salaries by 20% in survival bid

SIC Financial Services Ltd (SIC-FSL) has announced a 20 percent salary cut for its Managing Director and all staff as part of sweeping measures to revive the struggling company.

The cuts, which take effect in October 2025, are being spearheaded by Acting Managing Director, Dr. Sa-ad Iddrisu, who said the move is necessary to streamline costs and restore the company’s financial health.

The company also reiterated its readiness to introduce new services to rebuild confidence.

“We shall be rolling out new products as well, with the first set of new products expected to be available by the end of the fourth quarter of 2025,” the statement said, underscoring management’s intent to return the business to growth.

In addressing client concerns, the company pointed to government engagement as a key part of its recovery plan.

We want to assure you that we are actively seeking assistance from the government to settle all of you,” management stated, emphasizing that investor interests remain central to its strategy.

SIC-FSL further appealed to debtors, especially contractors and SMEs awaiting government payments, to honor their obligations as soon as possible.

The firm stressed that such cooperation is critical to restoring liquidity and ensuring long-term stability.

The ambitious move to cut salaries, insiders say, signals the company’s determination to take drastic steps in order to stay afloat and win back market trust.

It’s not going to be business as usual. No complacency. The government will no longer tolerate financial mismanagement and inefficiencies within state enterprises.

That was how President John Mahama announced his performance contract for all Chief Executives of State-Owned Enterprises when he addressed them at a conference organized by the State Interests and Governance Authority (SIGA) on March 13, 2025.

The President, who was speaking to the 2023 State Ownership Report, which highlighted widespread inefficiencies, with some performing at their worst levels since the beginning of Ghana’s Fourth Republic, warned that – “Loss-making SOEs will no longer be tolerated. They will be swiftly reformed, merged, privatised, or shut down,” – adding that CEOs risk removal for sleeping on the job.

He continued, “Corruption, procurement fraud, and financial mismanagement will be prosecuted strictly, and boards that rubber-stamp poor decisions will be replaced.”