Sale of SSNIT hotel shares to Bryan Acheampong: Price agreed fair and sensible – IMANI boss

The founder and President of IMANI Africa, Franklin Cudjoe, has entered the debate surrounding the sale of shares of hotels owned by the state-owned Social Security and National Insurance Trust (SSNIT) to the Minister for Food and Agriculture, Bryan Acheampong's Rock City Hotel Limited.

In a post shared on Tuesday, 21 May 2024, Franklin Cudjoe indicated his support for SSNIT's decision to sell shares of its hotels, arguing that it would lead to more efficient management.

He also stated that, based on his expertise in land economy, he believes the prices at which the shares of the four hotels are being sold to Rock City are justified.

“I think it is sensible for a state behemoth such as SSNIT, which has been 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 not running efficiently. Not only will this free up some liquidity, but it will also curtail the long reach of politicians into the brick-and-mortar businesses over which SSNIT has control.

“That said, I will support any competitive divestiture that brings more money, technology, skills, and preserves Ghanaian management. I believe the investment plan proposed and the price agreed for the four hotels is fair. As you all know, I studied Land Economy, and valuation of assets is at the core of the programme,” he added.

However, the IMANI boss indicated that he would not invest in the SSNIT hotels due to the associated risks.

“Speaking now as a valuer and a rational investor, I would never have invested my money in those SSNIT hotels. But some investors are daring. They see what others can't. Perhaps power,” he added.

Background:

The Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has alleged that six hotels belonging to SSNIT are being sold to the Minister of Food and Agriculture, Bryan Acheampong.

In a post shared on social media on Friday, 17 May 2024, the MP claimed that documents he has intercepted showed that negotiations to sell 60% of the shares of the six SSNIT hotels to the minister’s Rock City Hotel Limited are far advanced.

The North Tongu legislator stressed that the sale of state properties to government officials constitutes an abuse of power and should not be permitted.

He added, “The six SSNIT hotels being sold are: Labadi Beach Hotel, La Palm Royal Beach Hotel, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort, and Trust Lodge Hotel.”

Ablakwa further disclosed that he had petitioned the Commission for Human Rights and Administrative Justice (CHRAJ) to investigate and prevent the minister from acquiring the hotels.

He argued that the minister’s actions not only constitute an abuse of power but also suggest a lack of due process, procurement breaches, cronyism, graft, and a violation of the Constitution of Ghana.

SSNIT has stated it is selling 60% of the shares of the six hotels to Bryan Acheampong’s company because they presented the best offer.

It also clarified that shares of four, not six, of its hotels are being sold to Rock City, adding that the shares of the hotels were advertised for all interested parties to bid.

Bryan Acheampong has maintained that "there is no breach" as asserted by Ablakwa because, although he owns Rock City, he is not involved in its management.

Read Franklin Cudjoe's full post below:



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