SSNIT to engage stakeholders to advance the course of the Pension Scheme

The management of the Social Security and National Insurance Trust (SSNIT) has said it is looking forward to engaging its stakeholders to advance the course of the Pension Scheme.

SSNIT indicated this in a statement when informing former Chief Justice Sophia Akuffo that she made an unsubstantiated allegation regarding the botched sale of the hotels.

Madam Sophia Akuffo had accused the manager of SSNIT of deliberately running down the hotels just to see among themselves.

Sophia Akuffo made this claim in an exclusive interview with TV3’s Alfred Ocansey on Thursday, July 25.

However, SSNIT in a statement issued on July 29 reacting to the comment by Sophia Akuffo said the allegations by the former Chief Justice are “false and undermines the integrity and confidence in the Pension Scheme.”

In contrast to the former Chief Justice’s claim, SSNIT said it restructured the ownership of the hotels, brought in private hotel management companies, made changes in management and the Board where necessary, provided financial support, including the funding of maintenance and capital expenditure to make the hotels more competitive.

SSNIT proceeded to reiterate its justification as to why it decided to sell its shares which has now been terminated.

“As we have previously noted, although we have seen some improvement in the performance of the hotels, this has been far below what we require to finance growth and capital expenditure. Returns had been low or negative, and most of them had been making persistent losses and not paying dividends. Hence, the steps to bring in a strategic investor, which we have now terminated,” SSNIT stated.

SSNIT assured pensioners, contributors and the public of its commitment to managing the assets of the Trust in a manner that will ensure the long-term sustainability of the Scheme.

“SSNIT looks forward to engaging its stakeholders to advance the course of the Pension Scheme. We wish to assure pensioners, contributors, and the public of our commitment to managing the assets of the Trust in a manner that will ensure the long-term sustainability of the Scheme,” SSNIT added.

It could be recalled that SSNIT on Friday, July 12 announced to the public the termination of the controversial sale of the shares in the hotels after several opposition from various stakeholders.

“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.

Background

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.

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, 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.”