SSNIT reacts to Auditor-General’s report, says US$4.15million of locked-up funds recovered


Sat, 14 Aug 2021 Source: www.ghanaweb.com

• SSNIT has responded to the Auditor-General's report

• The company says US$4.15 million of the locked-up funds have been retrieved

• SSNIT further states efforts are being made to recover the rest of the money

The Management of the Social Security and National Insurance Trust (SSNIT) has reacted to the Auditor-General’s report that cited the company for over US$11 million loss from liquidations it carried out.

They explained in a statement dated August 13, and available to GhanaWeb that, the company has recovered US$4.15 million out of US$11,794,109 lost through the liquidation of three companies as the 2020 report states.

SSNIT further indicated that, efforts are currently underway to recover the remaining locked-up funds.

According to the Auditor-General’s report, SSNIT invested US$6.08 million in Ningo Salt Limited (NSL) in July, 2005, US$3,650,000 in Granite and Marbles Limited in July, 1994, and US$5,038,153 in Canada Investment Fund for Africa (CIFA) in June, 2005.

The Auditor-General further directed the Management of SSNIT to investigate the non-performance of the investments to ensure value for money.

It added that the Management of SSNIT should, “ensure that officers whose action led to the loss are appropriately sanctioned for the loss. We further urged Management to ensure that effective feasibility studies are carried out before investing.”

Revealing efforts made to recover the locked-up funds, SSNIT said:

a. The Trust invested US$6.08 million in Ningo Salt Limited (NSL) in July 2005, US$3,650,000 in Granite and Marbles Limited in July 1994 and US$5,038,153 in Canada Investment Fund for Africa (CIFA) in June 2005.

b. In the case of Ningo Salt Limited (NSL), the US$6.08 million stated as loss has reduced to US$1.93 million. The loan of US$4.15 million was granted through Ecobank Ghana Limited. Ecobank has fully repaid SSNIT with interest. The investment was made in July 2005.

c. On Granite and Marbles Limited, SSNIT managed to retrieve its unpaid Social Security Contributions of GH¢428,337.07. All the loans were converted to equity prior to the liquidation. Liquidation is underway and yet to be completed. The final accounts are yet to be submitted to the parties by the liquidator. The investment was made in July 1994.

d. On the Canada Investment Fund for Africa (CIFA), the Trust has recovered US$2,064,109 of the total investment. CIFA has been under liquidation since 2015. As per the Fund Manager’s 2019 report to shareholders, the liquidation process is yet to be concluded. The investment was made in June 2005,” SSNIT’s noted in its response.

SSNIT said its new management has put in place various measures including a policy that better controls the investment process has been developed and is being implemented.

It added that “professionals and experts have been appointed to Boards of subsidiary companies, which has led to major improvements in the corporate governance of these entities, resulting in better returns on investments.”

“Efforts have been made to ensure that the Trust gets the best deal when liquidations are evoked on some of these non-performing legacy investments. As evidence of prudent management of funds, the Trust has increased the net assets from GH¢8,406 million in 2016 to GH¢ 11,350 million as of December 2020 (unaudited accounts) representing an increase of 35%,” it added.

Read below the full statement.

Source: www.ghanaweb.com
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