The Social Security and National Insurance Trust (SSNIT) has announced its discontinuation of the sale of the 60% shares in the four hotels.
This comes 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 procced with the sale of 60% shares in the four hotels.
Organised labour to strike on July 15 over sale of SSNIT 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.
NPRA has approved sale of SSNIT’s 60% shares in four hotels – Employment Minister
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.
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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.
