SSNIT not involved in construction of Barracks

Accra (Greater Accra) 2nd July ?99

The Social Security and National Insurance Trust (SSNIT) on Wednesday said it is not involved in the construction of military barracks for the Ghana Armed Forces.

Mr Charles K. Asare, Director-General of SSNIT made this known to newsmen at the resumed SSNIT-Media briefings in Accra.

He said the sentiments and allegations being expressed by people in the media are of great concern to the Trust since it seeks to give the impression that SSNIT is not investing public funds properly.

Mr Asare explained that what really happened was a debt-equity swap between it and the government.

He said government owed SSNIT but could not pay, therefore an arrangement was made for SSNIT to acquire government shares in three companies in return for the debt.

Part of the arrangement was for SSNIT to pay cash to cover a percentage of the equity.

Consequently, government shares in Ghana Commercial Bank, Total and Tema Lube Oil was swapped "while Seven billion cedis was paid in cash to Ministry of Finance account, at the Bank of Ghana.

"It is this seven billion cedis, which is being used to finance the construction of the barracks".

Mr Asare noted that SSNIT's involvement in the whole project is only to disburse government funds.

"The money is not pension money. It is not ours. It is government's own money we are disbursing".