The Minister of Employment and Labour Relations, Ignatius Baffour Awuah, has announced that the National Pensions Regulatory Authority (NPRA) has approved the sale of 60percent of SSNIT’s shares in its hotel investment portfolio which Agric Minister, Bryan Acheampong, is buying.
The NPRA on June 28, directed SSNIT, which is under the Finance Ministry, to suspend its negotiations with Rock City, over the sale of four hotels, pending further evaluation and engagement.
But the country is yet to hear from the NPRA boss, John Kwaning Mbroh, who had on Friday, June 28, communicated to SSNIT in a letter he signed, quoting “As you may be aware, section 67 (2) of the [National Pensions] Act requires us to issue relevant guidelines to guide your investment decisions.”
“In furtherance of this requirement, you are hereby directed by the Board of the Authority to suspend all the processes seeking to engage Rock City Hotel as the Strategic Investor in a matter of the sale of the above hotels,” the NPRA boss said in his letter.
However, answering questions on the floor of Parliament, the sector minister, confirmed that all due processes have been complied with.
“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 that.
“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.
“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.”
He also outlined some reasons for the sale of SSNIT’s 60 percent shares in the hotels.
“SSNIT considered only the sale of shares for its hotel investment portfolio as a strategic decision after multiple attempts at restructuring proved insufficient.
“70-60% of its shares are 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.”
Samuel Okudzeto Ablakwa, the Member of Parliament (MP) for North Tongu, had praised the NPRA’s directive to SSNIT, after it asked the Scheme to suspend all negotiations geared at selling its hotels to Rock City.
Before this, Okudzeto Ablakwa, had raised issues of conflict of interest in the sale of 60 percent shares in Labadi Beach Hotel, La Palm Royal Beach Resort, Ride Royal Hotel, and Elmina Beach Resort to Bryan Acheampong’s Rocky City Hotel.
The directive called for the suspension of ongoing negotiations with Rock City over the sale of four hotels, a move Ablakwa describes as an “initial victory” for Ghanaians.
Currently, SSNIT, is considering Rock City Limited as the Strategic Investor for the sale of its four properties: Labadi Beach Hotel, La Palm Royal Beach Hotel, Elmina Beach Resort, and Ridge Royal Hotel.
Bryan Acheampong, also the Member of Parliament (MP) for Abertifi–Kwahu in the Eastern Region, has insisted he has done no wrong distancing himself from the day-to-day operations of Rock City Hotel.
He said, although he owns the company, he does not involve himself in the decisions that they take.
Speaking on Eyewitness News on Citi FM, Mr Ablakwa, acknowledged the significance of the development but emphasised that their ultimate goal is the cancellation of the deal.
“This development is a very significant one. I will call this an initial victory for the masses of our country. All along SSNIT has been defiant even when I petitioned CHRAJ, I intercepted documents that proved that they were going ahead full speed, neck-breaking speed to finalise this deal and that is why we had to mobilise and hit the streets and stage the ‘Hands Off Our Hotels’ demonstration last week the 18th of June.”
“I am glad that finally the resistance of the people, the voice of the people and in this matter the overwhelming majority of Ghanaians were very emphatic from organised labour, civil society organisations, the chiefs of La, the chiefs of Ga Mashie and every Ghanaian including those in academia were very very unequivocal that this deal stinks to the high heavens.
“It did not make sense, it did not meet conflict of interest standards. This deal was not in the national interest and yet SSNIT was defiant…what we want is a cancellation of this deal,” he added.
The SSNIT has also denied any foul play in its decision to sell a 60% stake in its hotels to Rock City Hotel.
However, in a letter addressed to SSNIT NPRA stated “As you may be aware, section 67 (2) of the [National Pensions] Act requires us to issue relevant guidelines to guide your investment decisions.”
“In furtherance of this requirement, you are hereby directed by the Board of the Authority to suspend all the processes seeking to engage Rock City Hotel as the Strategic Investor in a matter of the sale of the above hotels.”
