…In SSNIT Hotels sale to Rock City –
Lawyer Ralph Agyapong, a member of the governing New Patriotic Party (NPP), has stated that beyond political motivations, there are no grounds to defend the process of a top government appointee seeking to buy shares in government-run hotels.
Ralph, brother of Assin Central Member of Parliament Kennedy Agyapong, was reacting to the recent controversy surrounding the planned divestiture of hotels owned by the Social Security and National Insurance Trust (SSNIT).
SSNIT’s decision to offload its shares in four hotels to Rock City Hotels Limited, an entity owned by the agriculture minister, Bryan Acheampong, has dominated news headlines last week.
During a legal discussion on an Accra-based radio station, Ralph Agyapong, emphasized the impropriety of the deal, which has yet to be concluded.
He urged NPP communicators to refrain from defending the pending sale, highlighting the need for transparency and propriety in such transactions.
“At Registrar General, he (Bryan) is a director and even though he doesn’t take part in day-to-day operations… so far as your name remains at Registrar General as a director, the law perceives you as same.
“So the court will always hold you accountable in the case of any breach on the part of the company. As far as he is a director at the Registrar General, he remains a directing mind of the company. Simplicita!” he explained.
He emphasised that, the NPP had bright brains in Company Law, citing former Railways Minister Joe Ghartey and the current Attorney General Godfred Dame, who should be educating the party’s communicators on why the deal is not ideal.
“The argument that the person is not part of the hotel management on a day-to-day basis is neither here nor there in law, let us speak law.
“He should have gone to amend his filings (at the Registrar General’s Department). Indeed, you have people like Joe Ghartey and the current Attorney-General who are strong in Company Law. They should be advising NPP communicators on some of these things,” Ralph stressed.
According to Ralph, to the extent that Acheampong, remained a director of Rock City Hotels Limited, it was legally problematic to seek to buy the said shares with him remaining a director of the company and minister at the same time.
He stressed that beyond the politicization of the issues, the matters of conflict of interest had grounds because they needed not to be real but could be perceived.
“Joe Ghartey and Godfred Dame are well versed in these basic company law issues and they should be educating NPP communicators,” he stressed in an interview on Okay FM on May 23.
Media reports reveal documents have confirmed that the Agric minister remains a director of Rock City, even though he explains that he has no direct role in the day-to-day management of the business.
The Managing Director of the State Transport Company, Nana Akomea, has shared details of the bid made by Agriculture Minister Bryan Acheampong’s company, Rock City Limited, to purchase significant shares in four hotels owned by the (SSNIT.
Akomea revealed that Bryan Acheampong’s bid is $20 million higher than that of the second bidder interested in acquiring shares in the hotels.
He made these remarks while appearing as a panellist on Good Morning Ghana on Metro TV, stating that selling shares in the four hotels makes financial sense.
“In terms of the bidding, Bryan Acheampong’s bid is at least worth $20 million more than the second bidder. The second bidder is a company that is famous for estate construction, but I won’t mention the name. Their bid is $20 million less than Bryan Acheampong’s bid,” he disclosed.
Akomea continued, “…There’s some feeling that Acheampong’s bid is rather too much, but that is it, and the record is there. I thought Organised Labour would say that if the bidders did not meet the valuation, then they will make a good case, but I’m sure that the valuation has been met.”
Akomea defended Acheampong’s bid by emphasizing that the hotels are in a state of disrepair and require significant investment.
He explained, “These places have been running down. They are losing money, and the economic case for it is that with each passing day of them remaining on SSNIT’s books, they will incur more losses. They can’t pay electricity, they can’t pay their staff, SSNIT contributions and even GRA tax as we speak, and the pension funds are being blurred when these hotels remain on the books of SSNIT.”
However, SSNIT has justified its decision to sell a 60% stake in the hotels to Rock City Hotel, owned by Dr Bryan Acheampong, as his company presented the best proposal.
The SSNIT-Rock City saga was first published by North Tongu MP, Samuel Okudzeto Ablakwa, who alleged instances of conflict of interest and undervaluation among other infractions.
The announcement of the sale prompted a petition from Samuel Okudzeto Ablakwa to the Commission on Human Rights and Administrative Justice (CHRAJ), requesting an investigation over the sale, particularly to the Minister of State and Member of Parliament [Dr. Bryan Acheampong].
SSNIT has insisted the transaction was above board and the minister has insisted that nothing untoward was occasioned saying the trust aims to partner with a strategic investor to raise capital for hotel investments and management.
The hotels involved are Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort, and Trust Lodge Hotel.
Both Ablakwa and key members of Organised Labour, have expressed disagreement with SSNIT’s rationale for the sale.
Nana Akomea, the Head of Communications of the Bawumia Campaign Team, Nana Akomea, insisted that the decision by SSNIT to sell its shares in some hotels to Rock City Hotel, contrary to beliefs that the sale of these shares would cost the pensioner money, the sale of controlling shares by SSNIT is rather financially beneficial.
He said that managing SSNIT-owned businesses was rather costly to the pensioners citing some properties including the Elmina Hotel which has been experiencing losses and is rather costly to maintain.
“The case that SSNIT is losing money through these sales is rather the opposite.“The records show clearly that these businesses are costing the pensioners. Properties including Lababi Beach Hotel, Elmina Hotel, and Busua are all losing money.
“Even though Labadi beach hotel is making money, the return on investment is not much. But the rest are losing”, adding “So pension monies are being drained.”
He explained that businesses from which SSNIT has divested have turned profitable, as they are no longer under SSNIT’s direct management. This, according to Akomea, has led to improved financial performance for the Trust.
“When you look at the records, SSNIT is rather making money from businesses that it had divested its shares from. This is because they are no longer managing these businesses. When SSNIT has controlling shares, problems arise with who the government brings in to manage the business.
“When you look at the records from HFC, Trust bank, Merchant bank etc. You’ll see that they started making money when they gave away controlling shares. So this matter of SSNIT “playing chaskele” with our pension funds is neither here or there,” he said.
