The National Pensions Regulatory Authority (NPRA) has approved the Social Security and National Insurance Trust’s (SSNIT) sale of 60% of its hotel shares to Minister of Agriculture Bryan Acheampong.
The NPRA suspended the sale of SSNIT’s stake to Mr Acheampong’s Rock City Hotel earlier but has now given the green light for the deal to proceed.
READ ALSO: SSNIT Hotels Saga: NPRA’s Suspension A Victory For Ghanaians – Ablakwa
This was revealed by the Minister of Employment and Labour Relations, Ignatius Baffour Awuah.
He confirmed the NPRA’s approval on the floor of Parliament and said all due processes had been followed.
“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.
“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.”
The sector minister further outlined some reasons for selling SSNIT’s 60% shares.
“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 because I answered by saying that some of the investments are either making low returns or losses.
“So it is not in all cases that we are making losses, but even for those that are making profits, the rate of returns is lower.”
In his petition, Mr Ablakwa said that documents in his possession indicated that SSNIT was on the verge of selling a majority 60% stake in six of its hotels to Rock City Hotel Limited, a company reportedly owned by Bryan Acheampong, the Minister for Food and Agriculture.
The hotels under scrutiny in the petition include Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort, and the Trust Lodge Hotel.
According to Mr Ablakwa, the deal lacked due process and violated procurement procedures.
He, therefore, asked CHRAJ to stop the hotel sale to the Abetifi MP.
However, SSNIT, in response, explained that based on its criteria set out for sale, Rock City Hotel Limited submitted the best and strongest technical and financial proposal among the bids received.
SSNIT further clarified that the bids were successful for only four hotels, not the entire six, as the North Tongu MP claimed.