Kofi Bosompem Osafo-Maafo
The Social Security and National Insurance Trust (SSNIT) has received commendation from the Public Accounts Committee (PAC) of Parliament for its remarkable financial turnaround.
During a PAC sitting yesterday, SSNIT Director-General, Kofi Bosompem Osafo-Maafo revealed that the Trust moved from a deficit of GH¢300 million to a surplus of GH¢230 million, attributing the success to a 29% increase in net contributions, 49% growth in net investment income, and significant increases in other incomes.
Member of Parliament (MP) for Offinso South, Isaac Yaw Opoku, who led the questioning, praised SSNIT’s performance, noting that the trust’s main source of income comes from member contributions.
Mr. Osafo-Maafo explained that other income sources include penalties on delayed contributions and property sales.
The committee also noted an improvement in SSNIT’s current ratio, from 1:1 in 2021 to 1:6, indicating a better financial position.
“Your current ratio is better than the previous year. In 2021, it was 1:1 and this year, it’s improved slightly from 1:1 to 1:6. So, it’s not too bad, and we can only encourage you to improve upon it,” MP Opoku stressed.
MP Opoku encouraged SSNIT to continue improving its financial management, and added that this development highlights SSNIT’s efforts to enhance its financial sustainability and ensure the security of its members’ contributions.
The SSNIT Director-General again explained that the 49% substantial growth of the Trust’s net investment income amounted to approximately GH¢706 million.
Mr. Osafo-Maafo indicated that this impressive growth was complemented by a notable rise in other income streams, while highlighting the Trust’s effective cost management strategies, which contributed to the overall surplus.
The SSNIT boss noted that these factors combined had led to SSNIT’s improved financial performance, reflecting a more stable and sustainable future for the Trust.
Meanwhile, Mr. Osafo-Maafo has stated that SSNIT is yet to take possession of 8.03 acres of land and commercial units from Switchback Developers Limited (SDL), despite settling a $29.99 million syndicated loan on behalf of SDL.
Background
SSNIT paid off the loan to Fidelity Bank and Bank of Africa, as stipulated in a Deed of Mutual Release signed on October 8, 2021.
However, a disagreement over asset valuation has delayed the transfer of ownership, and the Auditor-General’s recent report reveals that SSNIT is still awaiting possession of the assets.
Mr. Osafo-Maafo emphasised that they were actively working to execute the asset swap as agreed in the extraordinary general meeting held on June 3, 2021.
By Ernest Kofi Adu, Parliament House