A Former Chief Justice of the Republic of Ghana Sophia Akuffo has accused the management of Social Security and National Insurance Insurance Trust (SSNIT) of deliberately running down the hotels that it wanted to sell just to reduce their value and in the end, distribute among themselves.
This, she said, has been the story of many state entities in Ghana.
She was commenting on the earlier justification that SSNIT management gave to the move to sell 60 percent stakes in the four hotels. It is recalled that in a press briefing on Monday, July 8, the Director General of SSNIT, Kofi Bosompem Osafo-Maafo insisted that all the hotels put up for sale had recorded consistent losses.
According to him, the majority of hotels were not paying dividends and selling them was the only option to revive the hotels.
“I don’t think anyone running an investment funding in the world would be sitting and earning substandard returns.. we have to address the issue,” he explained.
But Madam Sophia Akuffo told TV3’s Alfred Ocansey in an exclusive interview on Thursday, July 25 that “Of course, SSNIT will justify it because they have run down the hotels and just like in the public sector a lot of public properties have been run down just so that the value will be run down and always at the end of some cycle or the other they do sweet heart deals and do this distribution among themselves. SSNIT can say I have defamed them but I don’t care.”
She further commended labour unions for fiercely opposing the sale of the hotels to Agric Minister Bryan Acheampong.
“God bless the labour unions,” she said.
Asked by Ocansey whether the botched deal irked her? she answered:
”Yes of course, because conflict of interest is conflict of interest, you can’t be the judge and the jury, you can’t be the lawyer and the judge, you can’t be the litigant and after you have given your evidence and everything, your lawyer has done his submission and it is time to determine the outcome and now you are going to sit among the jury and you want to be part of that.”
When told that Agric Minister did not think there was a conflict of interest situation in this matter, Madam Sophia Akuffo said “Conflict of interest is not defined by the individual. Sometimes a conflict of interest, when you are managing standards, it is part of the performance standards. When you are managing ethical standards, sometimes it is simply perception. Will a reasonable man in the street, if you were to tell them of this, what will they say about it? If here, you can surmise that they will say it smells, then it smells. When you are a public person just because there is no law that says you cannot do it does not mean you should do it. Even in the Bible, it says I can do all things but not all things are good.”
SSNIT announced its discontinuation of the sale of the 60% shares in the four hotels after several labour unions announced their decision to embark on a nationwide strike following approval by the National Pensions and Regulatory Authority (NPRA) for SSNIT to proceed with the sale of 60% shares in the four hotels.
A statement released by SSNIT on Friday, July 12 announced to the public the termination of the controversial sale of the shares in the hotels.
“The Board and management of Social Security and National Insurance Trust (SSNIT) wish to inform the public that the process to divest 60% of SSNIT’s stake in the hotels has been terminated,” Board Chair of SSNIT Elizabeth Akua Ohene said in the statement.
SSNIT assured pensioners and contributors of managing the affairs of the Trust “prudently for the sustainability of the Pension Scheme.”
Background
Rock City Hotel, owned by Agriculture Minister Bryan Acheampong was revealed few weeks ago has the sole investor which satisfied the bidding process to purchase 60% of shares in SSNIT’s four hotels.
The news about the sale of the 60% shares of the four hotels was met with resentment from all corners of the general public.
SSNIT in its defence said the process to sell 60% of its shares in the hotels begun in 2018 and was in its final stage and that Rock City Hotel had met all requirement to purchase the 60% shares.
It said the four hotels which were put up for sale were running consistent losses and SSNIT has no funding to revive the hotels, hence, the need to put it up for sale.
When the matter came to light, North Tongu MP, Samuel Okudzeto Ablakwa vehemently opposed the bid saying state officials cannot “loot and share” state assets.
He further organised a demonstration to protest against the sale of SSNIT Hotels. Various labour unions also spoke against the move which further prompted the NPRA to direct SSNIT on June 28 to suspend its negotiations with Rock City over the sale of four hotels, pending further evaluation and engagement.
However, answering questions on the floor of Parliament on Thursday, July 11, Employment and Labour Relations Minister, Ignatius Baffour Awuah confirmed that NPRA has given the go ahead for the hotels to be sold after the Authority was satisfied that SSNIT has complied with all due processes.
He said the directive from the NPRA was only to ensure that SSNIT had complied with all the processes and documentation and not to completely prevent SSNIT from selling the hotels.
“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 that.
“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 tell you on authority that NPRA has since indicated that they have seen the processes, and they think that SSNIT can go ahead.”
This revelation prompted several labour unions to take action by declaring a nationwide strike following which SSNIT has terminated the controversial sale of 60% of its shares in the four hotels.
3FM
