Samuel Okudzeto Ablakwa
The Management of Social Security and National Insurance Trust (SSNIT) has refuted claims made by Samuel Okudzeto Ablakwa, the Member of Parliament (MP) for North Tongu, alleging that six hotels belonging to SSNIT are being sold to the Minister of Food and Agriculture, Bryan Acheampong.
The NDC MP who is raising questions about tne propriety of the deal has petitioned the Commission on Human Rights and Administrative Justice (CHRAJ) on Friday, May 17, to stop the sale of the said hotels.
Mr Ablakwa alleged in his petition that documents he has intercepted show that negotiations to sell 60% of the shares of the six SSNIT hotels to the Minister’s Rock City Hotel Limited “are far advanced.”
“Intercepted documents in my possession confirm that SSNIT is far advanced in selling a controlling 60% stake in six of its hotels to Rock City Hotel Limited, owned by Hon. Bryan Acheampong, the MP for Abetifi and Minister for Food and Agriculture” the NDC MP stated.
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.
Mr Ablakwa’s petition to CHRAJ seeks an investigation into various allegations, including conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft.
However, SSNIT in a statement reacting to the allegations made by NDC MP, Okudzeto Ablakwa clarified that the Trust is seeking to partner with a strategic investor to raise capital to invest in the hotels, and also assist in their management.
According to SSNIT, “The primary objective of finding a strategic investor is to increase efficiency, profitability, shareholder value, and the long-term sustainability of the SSNIT Pension Scheme”.
The statement explained that “Accordingly, SSNIT went through International Competitive Tendering (ICT) processes as prescribed by the Public Procurement Act, 2003 (ACT 663), as amended by ACT 914, for the selection of a strategic investor”.
The statement said the Trust commenced the process with the engagement of a Transaction Advisor through the ICT method of procurement, with the publication of advertisements in the Daily Graphic on 14th November 2018 and in the Ghanaian Times on 15th November 2018.
It added that “The advertisement was also published in an international magazine, The Economist in its January 5-11, 2019 edition”.
“As of the January 16th, 2019 deadline, fifteen (15) firms had expressed interest in submitting bids. Of these, six (6) were shortlisted and issued with Request for Proposal (RFP) documents”.
“Approval was sought from the Central Tender Review Committee (CTRC) for the selection of a Transaction Advisor on 12th December 2019 and that was granted on 24th December 2019”.
The statement added “Following the selection of the independent Transaction Advisor to guide the selection of a Strategic investor amongst others, further advertisements for an Expression of Interest (EOI) for a Strategic Partner for the SSNIT Hotels were placed in the Daily Graphic on 3rd February 2022 and in the Ghanaian Times on 7th February 2022. The advertisement was also published in The Economist Magazine on 26th February 2022”.
“A total of nine (9) companies responded to the advertisements by submitting proposals on the 23rd March 2022 deadline. Six (6) out of the nine (9) were then shortlisted and issued with Request for Proposal (RFP) documents.
The qualifying firms were invited for the opening of their financial proposals. Based on the technical and financial evaluation, the Rock City Hotel emerged as the best,” the statement said.
It continues that based on the criteria set out in the RFP, Rock City Hotel submitted the best and strongest technical and financial proposal amongst those received.
“Consequently, it is in negotiation with SSNIT to buy a 60% stake in each of the four (4) hotels (Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel and Elmina Beach Resort). Bids for Busua Beach Resort and the Trust Lodge were considered to be unsuccessful so they are no longer part of the hotels covered in this process”.
“The process of getting a strategic investor is in its final stages and therefore not yet concluded. It was mentioned on the Metro TV discussion that the Commission on Human Rights and Administrative Justice (CHRAJ) has been petitioned to conduct a full-scale investigation into the sale of SSNIT hotels”.
“Given the impending investigation by CHRAJ, Management of SSNIT will not comment further. SSNIT will cooperate fully with CHRAJ throughout its investigation process. SSNIT further wishes to assure pensioners, contributors and the public of its commitment to managing the affairs of the Trust prudently for the sustainability of the Pension Scheme,” the statement underscored.
-BY Daniel Bampoe