The Social Security and National Insurance Trust (SSNIT) is set to divest 60% of its shares in a selection of premier hotels across the region. This decision has sparked a significant debate among stakeholders, eliciting concern from Dr. Daniel Seddoh, a former CEO of the National Pensions Regulatory Authority (NPRA). Dr. Seddoh vocalized his apprehensions on a recent airing of the Super Morning Show, posing critical questions about the hurried nature of this sale and its potential repercussions on the pensioners’ fund.
Dr. Seddoh’s main contention revolves around the rationale behind the decision to sell assets that are poised to appreciate in value. He argues that the hotel business, when managed proficiently, has the potential to generate substantial profits. “These property values would appreciate going into the future. You don’t sell something that would appreciate [in value]. Really, why would you sell a hotel business? If there is a business that you can run and make a profit, why would you be eager to sell?” Dr. Seddoh questioned during the interview.
Further delving into the motivations behind this rush, Dr. Seddoh speculated about possible undisclosed reasons prompting this sale. He highlighted the stable cash flow from monthly contributions to the pension scheme, questioning the urgency of the decision without apparent financial distress. “And in any case, you are running a pensions scheme, end-of-month contributors will make their contribution, won’t they? So the cash flow is there. So why the rush? What is chasing somebody? Is there a lot more we don’t know?” he inquired.
Amidst these concerns, Dr. Seddoh called for a more transparent examination of SSNIT’s financial health, urging the organization to disclose any cash flow issues that might be driving the sale. He also advised that SSNIT should seek to enhance the management of these assets rather than hastily disposing of them, ensuring the profitability needed to support pensioners.
Dr. Seddoh further advocated for broad reforms within SSNIT to address systemic issues that might impair its effectiveness as a social security institution. “We should look at the bigger issue of reforming SSNIT. This is because people sit in there and make decisions, and if the decisions cannot be right, then we need to look at the bigger issue. The reform is critical so that [SSNIT] can serve the purpose of a social scheme,” he noted.
The unfolding drama took a more formal turn when North Tongu MP, Samuel Okudzeto Ablakwa, lodged a formal petition with the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate allegations surrounding the sale. The petition accuses SSNIT of potential conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft in the sale of six hotels, including the Labadi Beach Hotel and La Palm Royal Beach Resort.
In response to these allegations, SSNIT has maintained that the transaction was conducted transparently and in strict adherence to the Public Procurement Act. A statement issued by SSNIT on Sunday defended their decision, stating, “Rock City Hotel Limited submitted the best and strongest technical and financial proposal among the bids received, meeting the criteria set out in the Request for Proposals (RFP).” They also assured the public of their full cooperation with CHRAJ throughout the investigation.
Meanwhile, Bryan Acheampong, the owner of Rock City Hotel, refuted the accusations during his appearance on the same Super Morning Show. He expressed his frustration with the allegations, labeling them as baseless and an unfair attack on his integrity and that of Rock City. “You are just adding things together and trying to destroy me and trying to destroy Rock City. It is most unfair, it is ‘un-Ghanaian’ and you should stop it,” he contested.
As the controversy unfolds, Mr. Ablakwa is not backing down. He revealed plans to escalate the issue by approaching the Speaker of Parliament once the house resumes. “I have obtained the full list of 47 ministers and MPs diligently and I know for a fact that indeed, Bryan Acheampong confirmed this morning that he has not complied with the provisions of the Constitution. So I certainly will bring this to the attention of the Speaker as soon as the house resumes,” he declared.
