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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
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)
Email: email@example.com 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.
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
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?
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.
ARNOLD BOATENG 0244294754
ABU RAMADAN 0244570006
DAVIS OPOKU 0244861593
HENRY ASANTE 0248274646
HON APEATU ANKRAH 0244375034
BRIGHT ACHEMPONG 0276374763
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