SSNIT terminates sale of 60% hotel shares to Bryan Acheampong’s Rock City
The Social Security and National Insurance Trust (SSNIT) has cancelled the deal to sell majority stakes in four hotels to a company owned by Dr Bryan Acheampong, Minister of Food and Agriculture and MP for Abetifi.
The state pension entity decided to stop the process as a widespread industrial action by organised labour looms over disagreements on the sale of the hotels.
Prior to the termination of the deal, Dr Acheampong’s company, Rock City Hotel, pulled out of the transaction, citing a negative public perception of the processes.
Rock City Hotel was compelled to withdraw its bid to buy the 60% shares after organised labour issued a signal to all public sector workers to lay down their tools beginning Monday, July 15.
Several unions, including all teacher associations, the Ghana Medical Association (GMA), the Ghana Registered Nurses and Midwives Association (GRNMA), the Civil and Local Government Staff Association of Ghana (CLOGSAG), the Judicial Service Staff Association of Ghana (JUSAG), the General Transport, Petroleum Chemical Workers Union (GTPCWU) and the Public Services Workers’ Union (PSWU) responded to the total blackout call of the parent association, the Trades Union Congress (TUC).
A few hours after Rock City Hotel publicly announced its discontinuation of the process, SSNIT also made a U-turn to halt the transaction.
The Board Chair of SSNIT, Elizabeth Ohene, who communicated the decision on Friday evening, assured “pensioners, contributors and the public of our commitment to managing the affairs of the Trust prudently for the sustainability of the pension scheme.”
Organised labour decided to hit the streets after the National Pensions Regulatory Commission (NPRA) approved the transaction.
The NPRA initially suspended the sale of SSNIT’s stake but gave the green light for the deal to proceed on Thursday, July 11, 2024.
It will be recalled that North Tongu MP Samuel Okudzeto Ablakwa petitioned the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate allegations surrounding the sale of the six hotels owned by SSNIT to Bryan Acheampong.
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 and MP for Abetifi.
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.