Labour Unions reject plans to sell SSNIT hotels

Organised Labour has kicked against the proposed sale of 60% of the Social Security and National Insurance Trust’s (SSNIT) interests in some hotels.
It has therefore called on the Minister responsible for pensions to direct the Board of Trustees of SSNIT to “cancel the process immediately, otherwise we will advise ourselves.”
A statement issued yesterday and signed by the Secretary General of the Trades Union Congress (TUC), Dr. Yaw Baah, on behalf of Organised Labour, said they failed to understand why SSNIT’s interests in six hotels would be packaged and sold as if all the hotels were in the same financial situation.
According to Organised Labour, the original proposal to sell SSNIT’s interests in six hotels had been reduced to four, rendering the whole process null and void.
They emphasised that they found it difficult to understand why SSNIT’s interests in the hotels should be sold to a company owned by a Minister of State, adding, “We do not think that is right.”
“Organised Labour demands that the process of the sale of SSNIT’s interests in the hotels be cancelled immediately,” the statement said.
The statement noted that the workers’ representatives had informed the leadership that they had collectively raised objections to the process and had advised that the process be halted.

Ablakwa made sale public
The sale came to light after the National Democratic Congress Member of Parliament (MP) for North Tongu, Mr Samuel Okudzeto Ablakwa, raised an alarm about it.
The MP has since petitioned the Commission on Human Rights and Administrative Justice (CHRAJ), calling for an investigation into various allegations, including conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft.
In his petition, Mr. Ablakwa highlights what he views as violations of constitutional provisions, specifically citing Articles 78(3) and 98(2) of the 1992 Constitution.
He contends that these actions represent significant breaches of legal and ethical standards.

SSNIT response
In response to Mr. Ablakwa, SSNIT, in a statement, said the Trust sought to partner with a strategic investor to raise capital to invest in the hotels and assist in their management.
It said the primary objective of finding a strategic investor was to increase efficiency, profitability, shareholder value, and the long-term sustainability of the SSNIT Pension Scheme.
It noted 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.
It 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 national dailies on November 14, 2018, and November 15, 2018.
The advertisement was also published in The Economist Magazine on February 26, 2022.
“As of the January 16, 2019 deadline, 15 firms had expressed interest in submitting bids. Of these, six were shortlisted and issued with Request for Proposal (RFP) documents,” it stated. “Approval was sought from the Central Tender Review Committee (CTRC) for the selection of a Transaction Advisor on December 12, 2019, and that was granted on December 24, 2019.”
The statement said following the selection of the independent Transaction Advisor to guide the selection of a strategic investor, further advertisements for an Expression of Interest (EOI) for a strategic partner for the SSNIT Hotels were placed in the Daily Graphic on February 3, 2022, and in the Ghanaian Times on February 7, 2022.
The statement said a total of nine companies responded to the advertisements by submitting proposals by the March 23, 2022 deadline.
It said six out of the nine were then shortlisted and issued with RFP documents.
It reiterated that the qualifying firms were invited for the opening of their financial proposals; based on the technical and financial evaluation, the Rock City Hotel emerged the best.
It said based on the criteria set out in the RFP, Rock City Hotel submitted the best and strongest technical and financial proposal amongst those received.
The statement noted that consequently, it was in negotiation with SSNIT to buy a 60% stake in each of the four hotels (Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel, and Elmina Beach Resort).
It said bids for Busua Beach Resort and the Trust Lodge were considered unsuccessful, so they were no longer part of the hotels covered in this process.
It said the process of getting a strategic investor is in its final stages and therefore not yet concluded.
It said given the impending investigation by the CHRAJ, management of SSNIT would not comment further; adding that SSNIT would 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 said