The Social Security and National Insurance Trust (SSNIT) is grappling with significant loan defaults, as seven institutions collectively owe the Trust a staggering GH¢1 billion (GH¢1,060,518,035.72) in outstanding loan balances and accrued interest.
This debt burden, if left unresolved, threatens to undermine the liquidity, cash flow, and long-term sustainability of the national pension scheme.
GH¢765 million principal
According to the financial records as of the end of 2023, as captured in the Auditor General’s report dated December 31, 2024, the total principal amount loaned to the seven institutions stands at GH¢765 million (GH¢765,858,353.35).
GH¢602 million interest
The corresponding interest that has accumulated also amounts to GH¢602 million (GH¢602,745,845.54)—bringing the combined liability to GH¢1,368,604,198.89.
GH¢308 million paid
Despite this, total repayments made by these institutions so far amount to only GH¢308 million (GH¢308,086,163).
GH¢279m principal, GH¢28m interest paid
This comprises GH¢279 million (GH¢279,734,113) in principal and GH¢28 million (GH¢28,352,050) in interest, leaving SSNIT with an unpaid balance exceeding GH¢1 billion.
Switchback Developers owes $5.8m
In addition to the cedi-denominated debts, SSNIT is also owed $5.8 million ($5,814,927.17) by a separate institution, Switchback Developers Limited, for a loan granted in 2019.
Golden Beach Hotels owes GH¢3.5m
Golden Beach Hotels Limited owes SSNIT a total of GH¢3.5 million (GH¢3,531,237.25).
This includes a loan of GH¢1.2 million (GH¢1,243,792.89) disbursed on May 17, 2019, and an accrued interest of GH¢2.2 million (GH¢2,287,444.36).
Ridge Royal Hotel owes GH¢40.7m
Ridge Royal Hotel is even deeper in debt, with two separate loans amounting to GH¢40.7 million (GH¢40,742,584.52).
The first loan of GH¢6.4 million (GH¢6,439,293.27), disbursed on October 22, 2012, accrued GH¢27 million (GH¢27,679,004.16) in interest, resulting in a total of GH¢34 million (GH¢34,118,297.43).
The second loan of GH¢1.9 million (GH¢1,911,374.98), granted on October 3, 2016, accumulated GH¢4.7 million (GH¢4,712,912.11) in interest, bringing the total due to GH¢6.6 million (GH¢6,624,287.09).
Altogether, Ridge Royal Hotel’s total debt to SSNIT stands at GH¢40.7 million (GH¢40,742,584.52).
Intercity STC’s GH¢65m liability
State-owned Intercity STC Coaches Limited received three loans from SSNIT: GH¢1.7 million (GH¢1,744,098.48) on January 22, 2010, GH¢2.5 million (GH¢2,512,500) on December 23, 2011, and GH¢1.6 million (GH¢1,660,000) on October 23, 2012.
These bring the total principal to GH¢5,916,598.48.
The corresponding interest figures are GH¢7.4 million (GH¢7,471,269.76), GH¢32 million (GH¢32,314,756.94), and GH¢19 million (GH¢19,787,684.49) respectively, making the total interest GH¢59 million (GH¢59,573,711.19).
As at the end of 2023, Intercity STC owed SSNIT a total of GH¢65 million (GH¢65,490,309.67).
Ghana Road Fund has GH¢224m outstanding
One of the largest defaulters is the Ghana Road Fund, which received a single loan of GH¢329 million (GH¢329,600,000) from SSNIT on October 28, 2016.
By the end of 2023, interest accrued amounted to GH¢181 million (GH¢181,788,146.60), bringing the total obligation to GH¢511 million (GH¢511,388,146.60).
However, the Road Fund has made repayments totalling GH¢287 million (GH¢287,323,479)—comprising GH¢258 million (GH¢258,971,429) of the principal and GH¢28 million (GH¢28,352,050) in interest—leaving an outstanding debt of GH¢224 million (GH¢224,064,667.92).
Trust Logistics owes over GH¢70m
Trust Logistics Limited received a GH¢9 million (GH¢9,179,513.05) loan from SSNIT on November 27, 2014.
The interest accrued on this amount ballooned to GH¢61 million (GH¢61,722,881.26), sending the total to GH¢70 million (GH¢70,902,394.31).
Despite making a small repayment of GH¢246,291.21, the company still owes SSNIT GH¢70,656,103.10.
Kumasi Abattoir owes GH¢3.7m
Kumasi Abattoir is indebted to SSNIT to the tune of GH¢3.7 million (GH¢3,786,922.54).
The original loan of GH¢1 million, disbursed on September 29, 2014, has accrued GH¢2.7 million (GH¢2,786,922.54) in interest.
RSS Developers owes GH¢652m
RSS Developers Limited is one of the largest debtors.
The company took three loans from SSNIT— GH¢77 million (GH¢77,409,500) on April 1, 2011, GH¢291 million (GH¢291,706,330.68) on January 23, 2013, and GH¢41 million (GH¢41,451,950) on November 19, 2014—bringing the total loan amount to GH¢410 million (GH¢410,567,780.68).
Interest on these loans stands at GH¢117 million (GH¢117,258,421.65), GH¢133 million (GH¢133,255,705.77), and GH¢11 million (GH¢11,680,695.90) respectively, totalling GH¢262 million (GH¢262,194,823.32) in interest alone.
It however made payment of GH¢20 million (GH¢20,516,393) on the principal.
RSS Developers Limited, therefore, has an outstanding debt of GH¢652 million (GH¢652,246,210.72) owed to SSNIT.
Switchback Developers Owes $5.8m
Switchback Developers Limited was granted a $6.5 million ($6,578,704.34) loan between May 28 and July 12, 2019.
By 2023, it had accrued $636,222.83 in interest.
The company has repaid only $1.1 million ($1,119,925.21) in principal and $280,074.79 in interest, leaving a balance of $5.8 million ($5,814,927.17).
SSNIT urged to enforce loan recovery measures
The inability of these institutions to honour their debt obligations has prompted strong concerns over the financial health of SSNIT. The Auditor-General has advised the Trust to intensify its engagements with the management of the indebted entities to recover the loans.
In cases where no payment plans have been agreed upon, SSNIT has been urged to seize the underlying assets used as collateral and use them to offset the loans.
With over one billion cedis still locked up in defaulted loans, urgent and decisive action is needed to safeguard the pensions of current and future Ghanaian workers.
