Founding President IMANI Africa, Franklin Cudjoe has welcomed the decision by the Social Security and National Insurance Trust (SSNIT) to divest its stake in six hotels.
He described the move as sensible.
In a post on his Facebook page, he said “I think it is sensible for a state behemoth such as SSNIT, eternally abused by past and present politicians to scale down its real estate business, which has never been profitable. Similarly, SSNIT should seek private sector participation (co-investment) in wholly-owned hotels which are all not runnig efficiently. Not only will that free up some liquidity, but it will also amputate the long arm of the politicians, which tend to reach into the brick and mortar businesses over which SSNIT has control.
“That said, I will support any competitive divestiture that brings on board more money, technology , skills and preserves Ghanaian management. I think the investment plan proposed and the price agreed for the 4 hotels is fair. As you all know I studied Land Economy and valuation of assets is at the core of the programme. In a discussion with a course mate of mine on our platform, he shares the insights below. I have his permission to share this with you.
His comments come at a time North Tongu Member of Parliament Sanule Okudzeto Ablakwa had petitioned the Commission on Human Rights and Administrative Justice (CHRAJ) to probe the sale of six hotels including Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort, and the Trust Lodge Hotel to the lawmaker who is also the Minster of Food and Agriculture Bryan Acheampong.
Ablakwa is also seeking an investigation into various allegations, including conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft.
“I have also drawn attention to blatant violations of Article 78(3) and 98(2) of the 1992 Constitution as diligent checks from Parliament’s Committee on Office of Profit reveal that Hon. Bryan Acheampong has not applied and does not have the permission of the Speaker of Parliament to hold an office of profit,” he said.
SSNIT had stated that it is seeking to partner with a strategic investor to raise capital to invest in the hotels, and also assist in their management.
SSNIT in responding to Mr Ablakwa said 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.
But a statement issued by SSNIT management said “The Trust is seeking to partner a strategic investor to raise capital to invest in the hotels, and also assist in their management. 2. 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.
Below is the full statement…
The attention of the Management of Social Security and National Insurance Trust (SSNIT) has been drawn to a discussion on Metro TV’s Good Morning Ghana Programme on Friday, 17th May, 2024.
The discussion partly covered SSNIT’s strategic decision to divest 60% of its stake in the six (6) hotels in its investment portfolio.
The Management of SSNIT wishes to comment as follows:
1. The Trust is seeking to partner a strategic investor to raise capital to invest in the
hotels, and also assist in their management.
2. 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.
3. 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.
4. The Trust commenced the process with the engagement of a Transaction
Advisor through the ICT method of procurement, with publication of
advertisements in the Daily Graphic on 14th November, 2018 and in the Ghanaian
Times on 15th November, 2018.
5. The advertisement was also published in an international magazine, The Economist in its January 5-11, 2019 edition. As of January 16th, 2019 deadline, fifteen (15) firms had expressed interest in submitting bids. Of these, six (6) were shortlisted and issued with Request for Proposal (RFP) documents.
6. Approval was sought from the Central Tender Review Committee (CTRC) for the
selection of a Transaction Advisor on 12th December, 2019 and that was granted
on 24th December, 2019.
7. Following the selection of the independent Transaction Advisor to guide the
selection of a Strategic investor amongst others, further advertisements for an
9. Expression of Interest (EOI) for a Strategic Partner for the SSNIT Hotels were
placed in the Daily Graphic on 3rd February, 2022 and in the Ghanaian Times on
7th February, 2022. The advertisement was also published in The Economist
Magazine on 26th February, 2022.
