The Director-General of the Social Security and National Insurance Trust (SSNIT), Mr. Kofi Osafo-Maafo, on Saturday, said the Trust will continue to engage all stakeholders on the proposed sale of 60 per cent of its stake in four hotels.
He said that while going by the directive of the National Pension Regulatory Authority (NPRA) to suspend the sale, the Trust would continue to engage stakeholders “to let them know we did the right thing in good faith. We want better results and have done things transparently.”
Mr. Osafo-Maafo said this when he opened the 2024 SSNIT Media Encounter at Aburi in the Eastern Region.
It was on the theme: “Sustaining the SSNIT Pension Scheme: Investments and its Impact on Benefits Payment.”
He said the decision to sell the shares was largely commercial, with the aim of maximising the benefits.
“Our aims are not different from the Unions. We both want the best value. We want to maximise our benefits.”
Mr. Osafo-Maafo said the rationale for the investment decision included consistent losses, frequent requests for maintenance funding, high capital expenditure, and the need for a strategic partnership.
The hotels are La Palm Royal Beach, Elmina Beach, Busua Beach, Ridge Royal, Trust Lodge, and Labadi Beach.
The Director-General said that apart from raising capital and finding experts to manage the hotels, the ultimate goal was to manage investment risks to improve investment returns.
Mr. Osafo-Maafo said pension funds were not static and that at some points, losses needed to be cut for gains to be made.
“It is a portfolio; it changes with time,” he added.
He said Rock City bid for all six hotels and was the only bidder for lots two and three.
Mr. Osafo-Maafo said it (Rock City) submitted the “best and strongest” technical and financial proposal amongst those received.
He said consequently, Rock City started negotiation with SSNIT to buy a 60 per cent stake in each of the four hotels – Labadi Beach, La Palm Royal Beach, Ridge Royal Beach, and Elmina Beach – but that had stalled due to disagreement over payment terms and duration.
The Director-General said that given the criteria in the bidding process, bids for Busua and Trust Lodge were considered unsuccessful.
He described the Trust as the best pension scheme in the country because it offered the best value proposition, with benefits exceeding contributions.
He said the Scheme increased pensions every year, stressing, “no other scheme gives you all these…”
The Director-General said the time to process pensions had improved over the years and that management was building trust and confidence in the Trust to “offer brilliant service.”
“Things are not perfect, but we improve every time, so let’s fight to sustain the Scheme. Let’s preserve SSNIT and focus on things that matter…,” he said, assuring that “we will be paying pensions beyond 2036 and for life…”
Mr. Kingsley Adjei-Manu, General Manager, Operations, SSNIT, said that in the last five years, the Trust recorded improvements in the registration of new establishments, with a total of 88,640 new establishments registered as of 2023.
He said active members as of December last year stood at 1,951,494.
Ms. Patience Owusu, General Manager, Investment and Development, said 94.5 per cent of investments by the Trust were doing well.
She said the 5.5 per cent non-performing assets were being restructured for the financial stability of the Scheme.
The National Pensions Regulatory Authority (NPRA) yesterday directed SSNIT to suspend all engagements with Rock City Limited as a strategic investor for the four hotels.
“As you may be aware, Section 67 (2) of the Act requires us to issue relevant guidelines to guide your investment decisions. In furtherance of this requirement, you are hereby directed by the Board of the Authority to suspend all the processes seeking to engage Rock City Hotel Limited as the Strategic Investor in the matter of the sale of the above-mentioned hotels,” a statement signed by its Chief Executive Officer, John Kwaning Mbroh, said.
Mr. Samuel Okudzeto Ablakwa, North Tongu Member of Parliament, had petitioned the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate allegations surrounding the sale of the six hotels, four to the Food and Agriculture Minister, Dr. Bryan Acheampong, who is also the owner of the Rock City Hotel Limited.
He seeks investigations into allegations, including conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft.
Recently, the MP led a street protest, with support from the Trade Union Congress, to put pressure on the Government to stop the sale of the hotels.
GNA
