The Social Security and National Insurance Trust (SSNIT) has halted plans to offload 60% of its stake in some four hotels.
The hotels are La Palm Beach Hotel, Labadi Beach Hotel, Royal Ridge Hotel and Elmina Beach Hotel.
SSNIT made the decision barely 24-hours after labour unions declared their intention to embark on a nationwide strike on 15 July over the sale of the hotels to Rock City Hotel owned by Minister for Agriculture, Dr. Bryan Acheampong.
Rock City Hotel has since withdrawn its bid to acquire 60% stake in the four hotels.
In a statement issued by the Chairperson of SSNIT Board of Trustees, Elizabeth Akua Ohene on Friday, said the Trust is committed to managing the affairs of the Trust prudently for the sustainability of the Pension Scheme.
“The Board and Management of Social Security and National Insurance Trust (SSNIT) wish to inform the public that the process to divest 60% of SSNIT’s stake in the hotels has been terminated.
“We wish to assure pensioners, contributors and the public of our commitment to managing the affairs of the Trust prudently for the sustainability of the Pension Scheme,” the statement concluded.
UTAG’s capacity questioned
Unravelling the issues relating to the hotels, serious questions have been raised about the recent demand by the University Teachers Association of Ghana (UTAG) for the dissolution of the Board of Directors and Management of SSNIT.
The controversy stems from the fact that UTAG members do not contribute to SSNIT and are therefore not part of the scheme.
Given that UTAG members are not participants in the SSNIT scheme, the rationale behind their call for the dissolution of its Board of Directors and Management has come under scrutiny.
According to critics, since UTAG members do not contribute to SSNIT, their demand for changes within the Trust’s management structure is unfounded.
UTAG members participate in their own pension scheme, the Ghana University Staff Superannuation Scheme (GUSSS).
This specialized pension scheme is exclusively available to senior members or professionals who join the university, with an entry age of forty-five (45).
The coordination of the GUSSS scheme falls under the purview of the Vice Chancellors of these universities, who oversee its administration and ensure that it meets the retirement needs of its members.
Established in 1961/62 as a replica of the UK-based Federated Superannuation Scheme for Universities, GUSSS has been tailored to meet the specific needs of university staff in Ghana.
The scheme underwent a significant revision in 1976 by the Public Universities of Ghana, which include the University of Ghana (UG) in Legon, Kwame Nkrumah University of Science and Technology (KNUST) in Kumasi, and the University of Cape Coast (UCC) in Cape Coast. Over time, it has expanded to include the University of Education, Winneba; University for Development Studies (UDS) in Tamale; and the University of Mines and Technology (UMT) in Tarkwa.
Background
On 19 May 2024, the Social Security and National Insurance Trust (SSNIT) clarified that Rock City Hotel had made a legitimate bid for the four hotels and had emerged as the winner following the hotel’s presentation of the best and strongest technical and financial proposals of all those received by the Trust.
The opposition NDC MP for North Tongu, Samuel Okudzeto Ablakwa, in a recent post on his social media handles after a television discussion on Metro TV, announced that he had lodged a formal petition with the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate allegations surrounding the sale by SSNIT of six hotels to the Minister of Food and Agriculture, Bryan Acheampong.
In his petition, Okudzeto Ablakwa asserted that there are plans to sell a controlling 60% stake in six hotels owned by SSNIT to Rock City Hotel Ltd, a company owned by Dr Acheampong, who also serves as the MP for Abetifi.
The hotels under scrutiny in the petition are the Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort and the Trust Lodge Hotel.
Strategic partner
SSNIT, in a statement said its “attention has been drawn to a discussion on Metro TV’s Good Morning Ghana programme on Friday 17 May 2024, which partly covered SSNIT’s strategic decision to divest 60% of its stake in the six hotels in its investment portfolio”.
“The management of SSNIT wishes to comment as follows: SSNIT responds to Honourable Samuel Okudzeto Ablakwa’s comments on the sale of hotels the Trust is seeking to partner with a strategic investor to raise capital to invest in the hotels, and also assist in their management.
“The primary objective of finding a strategic investor is to increase efficiency, profitability, shareholder value and the long-term sustainability of the SSNIT pension scheme. Accordingly, SSNIT went through international competitive tendering (ICT) processes as prescribed by the Public Procurement Act 2003 (Act 663), as amended by Act 914, for the selection of a strategic investor.
“The Trust commenced the process with the engagement of a transaction advisor through the ICT method of procurement, with the publication of advertisements in the Daily Graphic on 14 November 2018 and in the Ghanaian Times on 15 November 2018.
“The advertisement was also published in an international magazine, The Economist, in its 5-11 January 2019 edition. As of the 16 January 2019 deadline, 15 firms had expressed interest in submitting bids. Of these, six were shortlisted and issued with Request for Proposal (RFP) documents. Approval was sought from the Central Tender Review Committee (CTRC) for the selection of a transaction advisor on 12 December 2019 and that was granted on 24 December 2019.
“Following the selection of the independent transaction advisor to guide the selection of a strategic investor … further advertisements for an Expression of Interest (EOI) for a strategic partner for the SSNIT hotels were placed in the Daily Graphic on 3 February 2022 and in the Ghanaian Times on 7 February 2022.
“The advertisement was also published in The Economist magazine on 26 February 2022. A total of nine companies responded to the advertisements by submitting proposals on the 23 March 2022 deadline.
“Six out of the nine were then shortlisted and issued with Request for Proposal (RFP) documents. The qualifying firms were invited for the opening of their financial proposals. Based on the technical and financial evaluation, the Rock City Hotel emerged the best.
“Based on the criteria set out in the RFP, Rock City Hotel submitted the best and strongest technical and financial proposal amongst those received. Consequently, it is in negotiation with SSNIT to buy a 60% stake in each of the four hotels (Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel and Elmina Beach Resort).
“Bids for Busua Beach Resort and the Trust Lodge were considered to be unsuccessful so they are no longer part of the hotels covered in this process. The process of getting a strategic investor is in its final stages and therefore not yet concluded.
“It was mentioned on the Metro TV discussion that the Commission on Human Rights and Administrative Justice (CHRAJ) has been petitioned to conduct a full-scale investigation into the sale of SSNIT hotels. Given the impending investigation by CHRAJ, the management of SSNIT will not comment further.
“SSNIT will co-operate fully with CHRAJ throughout its investigation process. SSNIT further wishes to assure pensioners, contributors and the public of its commitment to managing the affairs of the Trust prudently for the sustainability of the pension scheme,” the SSNIT statement concluded.
