7
Opinions Fri, 6 Jan 2012

Click for Market Deals →

Corruption, Mismanagement And Profligacy At SSNIT

INFORMAL SECTOR

FUND: 90,000 CONTRIBUTORS TO LOOSE CONTRIBUTIONS

Information available to AFAG indicate that the SSNIT is at the verge of either liquidating or

offloading its 100% stake in one of its subsidiaries, the SSNIT Informal Sector Fund (SISF) into

private hands on the pretext that SISF is not viable, and a financial drain on SSNIT.

Our preliminary investigation points to the fact that, SISF is a very viable company with the

potential of even exceeding the current mobilizations made by SSNIT in the near future. The

total failure of SSNIT to supervise the company have allowed the Managing Director, Kwame

Peprah, and his cohorts (the Executive Management and the Executive Council) to mismanage

the company both financially and operationally and thereby making it look like the Fund is not

viable.

AFAG wonders how a company within its 3 years of operation has registered over 90,000

Ghanaians and has a Fund Size of over GHC 23million through the hard work and sacrifices of

staff could be described as not viable and a drain. To us what this means is that if SSNIT has

supervised the company well and checked the siphoning of monies from the company into

private pockets and personal pleasure of the Executive Management, it would have done far

better. The smoke screen SSNIT has used is that SISF is autonomous. The MD has used this

smoke screen very well to mismanage the company to a point where workers salaries cannot be

paid, and the Field Staff who collect contributions from informal sector workers have been given

a one month break under the guise of Christmas break. Which company breaks its’ core activity

for Christmas festivities for one month?

THE CASE AGAINST THE MANAGING DIRECTOR

Several allegations have been made against the MD which include, profligate spending to the

tune of GHC70, 000 on trips abroad, threats, intimidations, non adherence to statutory

regulation by engaging a consultant to develop and review a 5-year strategic plan within a year

at a cost of US$70,000, insults on workers, outrageous rental of a residence to him costing over

$100,000 for two years. Furnishing for the MD’s residence to the tune of GHC 11,000 bears no

corresponding inventory of items bought yet when Marketing Officers request for legitimate

expenses such as transport subsidy to assist them mobilize more contributions and undertake

monitoring exercises, they are told there is no money!

AFAG wonders why all the calls on the SSNIT Board and Director General to check the

malfeasance going on in the company by workers have gone unheeded? Why is SSNIT refusing

to call the MD to book?

MISSING EIGHT MILLION GHANA CEDI SEED MONEY

Where is the eight million Ghana Cedis (GHC8, 000,000.00) released by SSNIT to start the

company? This amount seems to have been all dissipated despite the fact that, the items they

The Alliance for Accountable Governance (AFAG)

Facebook: http://www.facebook.com/AFAGGH

Email: afagovernance@gmail.comwere budgeted for are not all in place. These included 6 saloon vehicles, 3 operational vehicles,

furnishing, logistics, communication network and infrastructure etc. Currently the Fund is fast

accumulating debts for services and supplies that it has received but largely unpaid for: A rather

precarious situation for the Fund’s Balance Sheet position. Interestingly, the budget and funds

for above stated items were released as part of 2008/2009 budget allocation for the Fund by

SSNIT. These are issues SSNIT should immediately ask the MD, his Executives and the Board

to step aside on for full scale investigations to proceed instead of hiding behind “the project is

not viable slogan” whilst the rot continues – notwithstanding all the above which has culminated

into the bad financial situation of the company, in a recent SSNIT Board Meeting, the same MD

has been tasked to lead the process of restructuring the company which includes liquidation.

QUESTIONS

1. Why is SSNIT refusing to meet its commitment of releasing to SISF the allocated Funds

to support its budget and this is hampering the fund from meeting its financial

obligations?

2. Why has SSNIT arbitrarily delayed and stretched beyond measure all the processes of

reviewing and approving the budgetary requirements of the Fund for the years 2009,

2010 and 2011?

3. Is SSNIT intentionally looking on so that its’ false claim that the company is not viable

will “materialize” so that the company will be given on a silver platter to political big wigs?

Is SSNIT ready to sacrifice the expectation of over 90,000 informal sector contributors

from having good retirement for short-term gains for few political big wigs? What about

the consequences of rendering over 250 Ghanaians staff of SSNIT jobless?

4. Why has SSNIT outsourced the field marketing staff function to Mon Tran Ltd, knowing

very well that, after 5months, the company has not been able to meet its full staff

capacity? Why has SSNIT turned a blind eye to the high turnover rate of the company

which is affecting performance and fund mobilization? Is SSNIT not aware that, without

mobilizing funds from the market the scheme would collapse?

5. Why would the Chairman of the Executive Council, Mr. Kwame Peprah and the Public

Relations Manager spend over GHC 70,000 on the Diaspora marketing agenda in the

UK, Tanzania and USA when the local market is only 7% won? A couple of months after

this frivolous expenditure workers could not be paid under the pretext that SSNIT is not

releasing funds to run the company (these are the rots that SSNIT should be checking

and not a question of viability).

6. We are aware of these smoldering political machinations with an eye on the funds the

company has accrued over the period. We are also aware of the political big wigs behind

these schemes to rob the informal sector worker of a future pension, and the protection

being given to Kwame Peprah as he surgically tears apart the company. 7. Is SSNIT preparing to transfer 23 Million Ghana Cedis to first Bank, which is alleged to

be Kwame Peprah’s Bank?

OUR RESOLVE

The recommendations of AFAG are;

1. Executive Management should be asked to step aside for a full scale forensic audit

to be conducted into the activities of the Fund, especially the financials.

2. The entire set up of the Fund, laudable as the principle is, should be totally

overhauled including a change from a limited by guarantee company to one limited

by shares so that it can explore other business opportunities offered by the

enactment of Act 766.

3. SSNIT intervenes expeditiously to dialogue with staff and to explain the way forward,

imbibe a sense of vision and direction in workers, and ensure that outstanding

salaries are paid.

4. The decision to liquidate SISF should be taken off the table and the fund revitalized.

5. The Board of SISF should be reconstituted and fused with more knowledgeable

people with business drive.

6. AFAG is convinced that, the informal sector holds a high potential for the Fund and

that SSNIT should nurture and grow SISF accordingly by playing a VERY vital role in

the investment of mobilized funds.

AFAG is convinced that, the informal sector holds a high potential for the fund and that SSNIT

should sustain it accordingly and close a window of hope to persons who will tear the Fund

apart for their parochial interest.

AFAG is coming out soon with our statement on the demonstration on massive corruption in

public institutions and unbearable fuel prices soon.

SIGNED

ARNOLD BOATENG 0244294754

ABU RAMADAN 0244570006

DAVIS OPOKU 0244861593

HENRY ASANTE 0248274646

HON APEATU ANKRAH 0244375034

BRIGHT ACHEMPONG 0276374763

Columnist: AFAG

Send your news stories to and via WhatsApp on +233 55 2699 625.

Join our Newsletter