SSNIT to stop investing in manufacturing sector

Kumasi, July 25, GNA - The Social Security and National Insurance Trust (SSNIT) is to disengage from direct lending to private companies and to stop investing in the manufacturing sector.

Mr Kwaku Osei Bimpong, Public Affairs Manager of the Trust, who has announced this on Friday, also said returns on the SSNIT's investments in those areas had been disappointing.

He was speaking at an outreach programme organised by SSNIT to brief journalists on the trust's operations, in Kumasi.

Mr Bimpong said the stock market and the financial sectors were now the prime focus of the SSNIT's investment drive.

He said the Trust was determined to reduce loses and hinted that it was for this reason that it has decided to sell its rented flats. Mr Bimpong cited that SSNIT paid 460 million cedis as property rate and earned 160 million cedis on rent in the Volta Region.

He said in respect with Asuoyeboa flats in Kumasi, total rent was estimated at about two billion cedis while property rate payment could be 1.2 billion cedis.

He said the property rate when added to the repair and maintenance cost show clearly that, "we are not in good business".

Mr Bimpong used the occasion to advise employees against colluding with employers to under-declare their salaries, saying, "pension benefits are earnings related".

He said the Trust was collaborating with the Internal Revenue Service to identify employers who did not declare the correct salaries of their employees.

Mr Ahmed A. Mahamadu, the Ashanti Regional Area Manager, said the Trust had launched an exercise to clean up the data of all contributors who have attained the age of 54 and more as part of efforts at removing delays in the payment of their retirement benefits.

He asked contributors to lodge their benefit claims at the district offices closer instead of travelling to Accra.