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President Nana Addo Dankwa Akufo-Addo has said that the GHS230 million surplus on the operations of Social Security and National Insurance Trust (SSNIT) should bring relief to organised labour.
The President said that the 230 million surplus was announced in the wake of an “unnecessary” controversy that the attempt to sell the hotels belonging to SSNIT generated.
“Take note of the improved performance of SSNIT which recently announced a surplus of GHs 230million on its operations, this should be reassuring to organised labour and perhaps bring into sharper relief the unnecessary controversy that was recently generated by SSNIT’s efforts to load non-performing assets in its hotel portfolio,” he said at the Trades Union Congress (TUC) quadrennial conference at Kasoa in the Central Region on Tuesday, August 20.
He added, “All of us need to be measured when it comes to making decisions of pronouncement that will affect the long-term interests of pensioners.”
Recently, the Management of SSNIT told former Chief Justice Sophia Akuffo that she made an unsubstantiated allegation regarding the botched sale of the hotels.
Madam Sophia Akuffo had accused the manager of SSNIT of deliberately running down the hotels just to sell among themselves.
Sophia Akuffo made this claim in an exclusive interview with TV3’s Alfred Ocansey on Thursday, July 25.
“Of course, SSNIT will justify it because they have run down the hotels and just like in the public sector a lot of public properties have been run down just so that the value will be run down and always at the end of some cycle or the other they do sweet heart deals and do this distribution among themselves,” she said.
However, SSNIT in a statement issued on July 29 reacting to the comment by Sophia Akuffo said the allegations by the former Chief Justice are “false and undermines the integrity and confidence in the Pension Scheme.”
In contrast to the former Chief Justice’s claim, SSNIT said it restructured the ownership of the hotels, brought in private hotel management companies, made changes in management and the Board where necessary, provided financial support, including the funding of maintenance and capital expenditure to make the hotels more competitive.
SSNIT proceeded to reiterate its justification as to why it decided to sell its shares which has now been terminated.
“As we have previously noted, although we have seen some improvement in the performance of the hotels, this has been far below what we require to finance growth and capital expenditure. Returns had been low or negative, and most of them had been making persistent losses and not paying dividends. Hence, the steps to bring in a strategic investor, which we have now terminated,” SSNIT stated.
“We wish to emphasise that the allegations of deliberate mismanagement of SSNIT hotels are false and undermine the integrity and confidence in the Pension Scheme. Allegations of this nature, without substantiated evidence, create unnecessary tension among stakeholders and potentially detract the public from the constructive dialogue needed to address genuine issues,” SSNIT added.
SSNIT assured pensioners, contributors and the public of its commitment to managing the assets of the Trust in a manner that will ensure the long-term sustainability of the Scheme.
It could be recalled that SSNIT on Friday, July 12 announced to the public the termination of the controversial sale of the shares in the hotels after opposition from various stakeholders.
“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,” Board Chair of SSNIT Elizabeth Akua Ohene said in the statement.
Background
Rock City Hotel, owned by Agriculture Minister Bryan Acheampong was revealed fa ew weeks ago has the sole investor wwhosatisfied the bidding process to purchase 60% of shares in SSNIT’s four hotels.
The news about the sale of the 60% shares of theasasur hotels was met with resentment from all corners of the general public.
SSNIT in its defence said the process to sell 60% of its shares in the hotels bbeganin 2018 and was in its final stage and that Rock City Hotel had met all requirement to purchase the 60% shares.
It said the four hotels which were put up for sale were running consistent losses and SSNIT has no funding to revivrequirementss, hence, the need to put it up for sale.
When the matter came to light, North Tongu MP, Samuel Okudzeto Ablakwa vehemently opposed the bid saying state officials cannot “loot and sthemre” state assets.
He further organised a demonstration to protest against the sale of SSNIT Hotels. Various labour unions also spoke against the move which further prompted the NPRA to direct SSNIT on June 28 to suspend its negotiations with Rock City over the sale of four hotels, pending further evaluation and engagement.
However, answering questions on the floor of Parliament on Thursday, July 11, Employment and Labour Relations Minister, Ignatius Baffour Awuah confirmed that NPRA has given the ggo-aheadfor the hotels to be sold after the Authority was satisfied that SSNIT has complied with all due processes.
He said the directive from the NPRA was only to ensure that SSNIT had complied with all the processes and documentation and not to completely prevent SSNIT from selling the hotels.
“Yes, iNPRA indeed cameup with a directive, but I would appreciate it if my brother, my colleague, really read the directive from NPRA. It said it needed to be furnished with all information relating to the sale of the hotels, which SSNIT has since done
“So, it wasn’t like a direct something that SSNIT should not go ahead to do anything, but then, SSNIT can only go ahead when NPRA, which is the regulator within the field, had certified that they have seen all the documentation and the processes, and they think that we are good to go.
“Yes, so, as a minister, I can tell you tell you on authority that NPRA has since indicated that they have seen the processes, and they think that SSNIT can go ahead.”
This revelation prompted several labour unions to take action by declaring a nationwide strike following which SSNIT terminated the controversial sale of 60% of its shares in the four hotels.
3 news.com
