Why SSNIT is selling 60% stake in four hotels to Bryan Acheampong

The Social Security and National Insurance Trust (SSNIT) has stated that its decision to sell a 60% stake in its hotels to Rock City Hotel, owned by Dr. Bryan Acheampong who doubles as the Minister for Food and Agriculture, is because his company presented the best proposal.

According to SSNIT, the sale of the hotels to the private investor aligns with the Trust's strategy to partner with a strategic investor to raise capital for investment in its hotels and to assist in their management.

This announcement follows a petition by the Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, to the Commission on Human Rights and Administrative Justice (CHRAJ), requesting an investigation and halt to the sale of six hotels to private investor, Bryan Acheampong.

The hotels includes Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort, and the Trust Lodge Hotel.

In a press release sighted by GhanaWeb Business, SSNIT's management noted that the partnership process began in 2018.

"The Trust initiated the process by engaging a Transaction Advisor through the ICT method of procurement, with advertisements published in the Daily Graphic on November 14, 2018, and in the Ghanaian Times on November 15, 2018. The advertisement also appeared in the international magazine, The Economist, in its January 5-11, 2019 edition," part of the release read.

"By the January 16, 2019, deadline, fifteen firms had expressed interest in submitting bids. Of these, six were shortlisted and provided with Request for Proposal (RFP) documents. Approval for the selection of a Transaction Advisor was sought from the Central Tender Review Committee (CTRC) on December 12, 2019, and granted on December 24, 2019," it added.

The release further stated, "Following the selection of the independent Transaction Advisor to guide the selection of a strategic investor, among other tasks, further advertisements for an Expression of Interest (EOI) for a Strategic Partner for the SSNIT Hotels were placed in the Daily Graphic on February 3, 2022, and in the Ghanaian Times on February 7, 2022. The advertisement was also published in The Economist Magazine on February 26, 2022."

"Based on the criteria outlined in the RFP, Rock City Hotel submitted the best and most robust technical and financial proposal among those received. Consequently, it is negotiating with SSNIT to purchase a 60% stake in each of the four hotels: Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel, and Elmina Beach Resort," it highlighted.

However, SSNIT indicated that bids for Busua Beach Resort and the Trust Lodge were unsuccessful, emphasizing that they are no longer part of the hotels included in this process.



Read SSNIT's press release below;

The attention of the Management of Social Security and National Insurance Trust (SSNIT) has been drawn to a discussion on Metro TV’s Good Morning Ghana Programme on Friday, 17th May, 2024.

The discussion partly covered SSNIT’s strategic decision to divest 60% of its stake in the six (6) hotels in its investment portfolio.

The Management of SSNIT wishes to comment as follows:

The Trust is seeking to partner a strategic investor to raise capital to invest in the hotels, and also assist in their management.

The primary objective of finding a strategic investor is to increase efficiency, profitability, shareholder value, and the long-term sustainability of the SSNIT Pension Scheme.

Accordingly, SSNIT went through International Competitive Tendering (ICT) processes as prescribed by the Public Procurement Act, 2003 (ACT 663), as amended by ACT 914, for the selection of a strategic investor.

The Trust commenced the process with the engagement of a Transaction Advisor through the ICT method of procurement, with publication of advertisements in the Daily Graphic on 14th November, 2018 and in the Ghanaian Times on 15th November, 2018. The advertisement was also published in an international magazine, The Economist in its January 5-11, 2019 edition.

As of January 16th, 2019 deadline, fifteen (15) firms had expressed interest in submitting bids. Of these, six (6) were shortlisted and issued with Request for Proposal (RFP) documents.

Approval was sought from the Central Tender Review Committee (CTRC) for the selection of a Transaction Advisor on 12th December, 2019 and that was granted on 24th December, 2019.

Following the selection of the independent Transaction Advisor to guide the selection of a Strategic investor amongst others, further advertisements for an Expression of Interest (EOl) for a Strategic Partner for the SSNIT Hotels were placed in the Daily Graphic on 3rd February 2022 and in the Ghanaian Times on 7th February 2022. The advertisement was also published in The Economist Magazine on 26th February 2022.

A total of nine (9) companies responded to the advertisements by submitting proposals on the 23rd March, 2022 deadline. Six (6) out of the nine (9) were then shortlisted and issued with Request for Proposal (RFP) documents.

The qualifying firms were invited for the opening of their financial proposals.

Based on the technical and financial evaluation, the Rock City Hotel emerged the best. Based on the criteria set out in the RFP, Rock City Hotel submitted the best and strongest technical and financial proposal amongst those received.

Consequently, it is in negotiation with SSNIT to buy a 60% stake in each of the four (4) hotels (Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel and Elmina Beach Resort). Bids for Busua Beach Resort and the Trust Lodge were considered to be unsuccessful so they are no longer part of the hotels covered in this process.

The process of getting a strategic investor is in its final stages and therefore not yet concluded. It was mentioned on the Metro TV discussion that the Commission on Human Rights and Administrative Justice (CHRAJ) has been petitioned to conduct a full-scale investigation into the sale of SSNIT hotels.

Given the impending investigation by CHRAJ, Management of SSNIT will not comment further. SSNIT will cooperate fully with CHRAJ throughout its investigation process.

SSNIT further wishes to assure pensioners, contributors and the public of its commitment to managing the affairs of the Trust prudently for the sustainability of the Pension Scheme.

Thank You.

SSNIT, WE DELIVER ON OUR PROMISE

Issued by Management

SA/MA