Employment Minister Reveals NPRA Has Greenlit The Sale Of SSNIT's Shares To Rock City Hotel

Employment Minister Reveals NPRA Has Greenlit The Sale Of SSNIT's Shares To Rock City Hotel

  • Agriculture Minister Bryan Acheampong's Rock City Hotel has received the greenlight to continue negotiating with SSNIT for the purchase of the SSNIT hotels
  • This was revealed by the Employment and Labour Relations Minister, Ignatius Baffour Awuah in parliament today, June 11, 2024
  • He said the NPRA was pleased after conducting an evaluation on the processes of the sale

The Employment and Labour Relations Minister, Ignatius Baffour Awuah, says the National Pensions Regulatory Authority (NPRA) has greenlit the sale of SSNIT’s 60% stake in its hotel investment portfolio.

The NPRA, on June 28, 2024, ordered SSNIT to suspend its negotiations with Bryan Acheampong’s Rock City Hotel pending further evaluation and engagement after North Tongu Member of Parliament, Samuel Okudzeto Ablakwa, raised concerns about the sale.

Employment Minister Reveals NPRA Has Greenlit The Sale Of SSNIT's Shares To Rock City Hotel
Bran Acheampong's (L) Rock City Hotel has been permitted to continue negotiations with SSNIT on acquiring the Labadi Beach Hotel (R)
Source: UGC

However, according to the Minister, the NPRA has since rescinded its decision and given SSNIT the nod to sell the hotels.

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He said the NPRA was pleased with the findings of its evaluation and engagement with stakeholders and further expressed satisfaction with SSNIT’s strict compliance with due process.

Ignatius Awuah pointed out that the NPRA ordering SSNIT to suspend the sale was not to completely halt the sale but to allow for more engagement.

“[NPRA] had actually certified that they have seen all the documentation and the processes, and they think that we are good to go,” he said.

He reiterated the need for SSNIT to get rid of its hotel investment portfolio as a strategic decision after multiple attempts at restructuring its investment portfolio failed.

He said SSNIT needs to sell 60 to 70% of its shares in its hotel investment portfolio to block the haemorrhage of funds being funneled into keeping the hotels fiscally afloat as they have failed to make the requisite returns to be financially self-sufficient.

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SSNIT boss justifies sale of SSNIT hotels

Earlier, the Social Security and National Insurance Trust (SSNIT) explained its decision to sell its 60% stake in some four hotels to Rock City Hotel Limited.

In a press briefing on Monday, July 8, 2024, the Director General of SSNIT, Kofi Bosompem Osafo Maafo, said all hotels listed by SSNIT for sale had suffered a series of losses over the years.

He said the majority of hotels listed no longer pay dividends to the government, leaving the state with no other option than to put them up for sale.

He argued that that was the only way to revive the state hotels.

SSNIT denies Fredy Blay’s claims

YEN.com.gh reported that Kofi Bosompem Osafo-Maafo denied claims made by Freddy Blay that SSNIT had rejected a $200 million bid from his son.

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According to the SSNIT boss, the former NPP chairman's son did not make it past the evaluation stage before he was disqualified.

He said Blay's proposal was weak and did not meet the standards the SSNIT wanted.

Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh

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Cornerlis Affre (CA and Politics Editor) Cornerlis Kweku Affre is at present a Current Affairs Editor at Yen.com. He covers politics, business, and other current affairs. He has worked in various roles in the media space for at least 5 years. You can reach out to him at cornerlis.affre@yen.com.gh