NPRA has approved sale of 60% shares of 4 SSNIT hotels - Employment minister

The Minister of Employment and Labour Relations, Ignatius Baffour Awuah, has stated that the National Pensions Regulatory Authority (NPRA) has approved the sale of the 60% share of the four hotels of the Social Security and National Insurance Trust that are being sold to Rock City Hotel Limited, which belongs to the minister for Food and Agriculture, Bryan Acheampong.

The announcement by the minister comes after the NPRA directed SSNIT to halt all the processes for the sale of the hotels, including the Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, and Ridge Royal Hotel.

Speaking on the floor of Parliament on Thursday, July 11, 2024, Baffour Awuah clarified that the authority only directed SSNIT to halt the process for the sale of the shares of the hotels in order to look into certain issues which have now been resolved.

"Yes, it is true that NPRA came up 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 actually certified that they have seen all the documentation and the processes, and they think that we are good to go," he told Parliament.

He added, "Yes, so, as a minister, I can tell you on authority that NPRA has since indicated that they have seen the processes, and they think that SSNIT can go ahead."

The minister also explained why SSNIT had to sell the shares of the hotels in question to the House.

He said that the sale of the shares is the only way to ensure that the resources of SSNIT are not exhausted.

"SSNIT considered only the sale of shares for its hotel investment portfolio as a strategic decision after multiple attempts at restructuring proved insufficient. Selling 60-70% of its shares is deemed the most viable solution to prevent further depletion of resources and to bring in private participation."

"Is it a good business activity? Yes, I want to believe my colleague is listening to me fully, well because I answered by saying that some of the investments are either making low returns or making losses. So, it is not in all cases that we are making losses, but even for those that are making profits, the returns are low."

Background:

The National Pensions Regulatory Authority had directed SSNIT to suspend all engagements with Rock City Hotel Limited as a strategic investor for the four hotels.

The NPRA emphasized the need to issue relevant guidelines to guide SSNIT's investment decisions, as stated in a directive signed by its Chief Executive Officer, John Kwaning Mbroh.

The Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has petitioned the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate allegations surrounding the sale of the hotels and welcomed the decision of the authority.

The MP seeks investigations into allegations including conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft.

Recently, Ablakwa led a street protest, supported by the Trade Union Congress, to pressure the government to halt the sale of the hotels.

BAI/GA