Government dares Organized Labour as it goes with sale of SSNIT hotels
By Augustus Acquaye The Minister of Employment and Labour Relations, Ignatius Baffour Awuah, says the National Pensions Regulatory Authority, NPRA has approved the 60 percent sale of SSNIT’s shares in its hotels. He said all due processes regarding the sale had been complied with. He said SSNIT can only go ahead with the sale when […]
By Augustus Acquaye
The Minister of Employment and Labour Relations, Ignatius Baffour Awuah, says the National Pensions Regulatory Authority, NPRA has approved the 60 percent sale of SSNIT’s shares in its hotels.
He said all due processes regarding the sale had been complied with. He said SSNIT can only go ahead with the sale when NPRA had given the green light.
He said SSNIT believes the sale is a strategic decision after multiple attempts at restructuring its hotels proved insufficient. Mr. Baffour Awuah, made this known in Parliament in answer to an urgent question on the sale filed by MP for North Tongu Samuel Okudjeto Ablakwa.
“Mr Speaker, SSNIT’s decision to divest 60 percent of its stake in the hotels is not an isolated decision but part of its broader strategy to improve its investment performance and ensure the long-term sustainability of the Scheme,” he said.
Mr Baffour Awuah said despite these efforts, returns from the Hotels were either low or negative, as a result SSNIT could not afford to continue spending pensioners’ funds to bail out these Hotels.
He said the sale of the majority stake in the Hotels formed part of SSNIT’s broader strategy to enhance the performance and sustainability of the Scheme’s investment.
“Mr Speaker, it is worth noting that having a majority stake or wholly owing a company does not guarantee performance.”
He said for instance SSNIT minority stake in companies such as West Hill Mall Limited, GCB Bank, Republic Bank Ghana, Goil Ghana Ltd, Ecobank Ghana and Standard Chartered Bank Ghana; saying “despite SSNIT Minority stake in these companies, returns of SSNIT’s investment in these companies have been positive and relatively higher.”
“Mr Speaker, SSNIT considered only the sales option for its Hotels Investment Portfolios as a strategic decision after multiple attempts at restructuring proved insufficient.”
He said SSNIT, selling 60 per cent of its shares, was deemed the most viable solution to prevent further depletion of resources and to bring in private participation.
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