An X post on May 17, 2024, by the Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has drawn significant attention by revealing that the Social Security and National Insurance Trust (SSNIT) is on the verge of divesting 60% each of its shares in four prominent hospitality assets: Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel, and Elmina Beach Resort. The news about the divestment is not as controversial as the company to which 60% is going. These shares are set to be sold to Rock City Group, a company owned by Bryan Acheampong, a Member of Parliament and an Agriculture Minister.
There has since been a huge controversy with allegations of conflict of interest and state capture.
Reactions
With keen interest from several stakeholders, Organised Labour, an association of public sector workers, has called on the Social Security and National Insurance Trust (SSNIT) to cancel the proposed sale of its stake in six hotels. They have threatened to embark on industrial action if SSNIT proceeds with the sale, particularly to the Minister of Food and Agriculture, Bryan Acheampong.
At a press conference in Accra, Secretary General of the Trades Union Congress Dr Yaw Baah, and Head of Civil Service and Local Government Association of Ghana (CLOGSAG) Dr Isaac Bampoe said SSNIT violated investment guidelines in selling shares.
A former CEO of the National Pensions Regulatory and Authority Dr Daniel Seddoh says SSNIT should not be in a hurry to divest its stake in the four hotels Trust. He told Joy News the decision to divest is premature and potentially detrimental to the interest of SSNIT contributors.
In light of the brewing controversy, DUBAWA sought to clarify the issues and the roles of the key parties involved, including Samuel Okudzeto Ablakwa, the Member of Parliament for North Tongu, SSNIT, and Bryan Acheampong. The aim is to understand the concerns surrounding this matter comprehensively.
SSNIT’s Strategic Move
In a statement issued on May 19, 2024, SSNIT indicated that its decision to divest 60% of its shares in these hospitality properties is driven by a broader strategy to optimise its investment portfolio. The institution, responsible for managing the pensions of millions of Ghanaians, aims to raise capital to invest in its hotels and assist in their management by selling a significant portion of its stakes. SSNIT noted that this move began in 2018 through International Competitive Tendering (ICT) processes, as prescribed by the Public Procurement Act.
SSNIT explained that Rock City Hotel Limited submitted the best and strongest technical and financial proposal among the bids received, meeting the Request for Proposals (RFP) criteria. SSNIT said the selection process was transparent and strictly adhered to the Public Procurement Act. The Trust emphasised that no favouritism was involved in selecting Rock City Hotel Limited.
Okudzeto Ablakwa’s Opposition and Call for Investigations
In contrast, Mr Ablakwa, the outspoken Member of Parliament for North Tongu and a staunch government critic, has raised significant concerns about the divestiture. Mr Ablakwa questions the transparency of the sale, particularly to a government appointee, suggesting it may not be in the best interest of SSNIT’s contributors. He is calling for an investigation into various allegations, including conflict of interest, abuse of power and lack of due process, procurement breaches, cronyism, and graft.
Mr Ablakwa believes that the involvement of a sitting minister in such a transaction undermines public trust. Because of this, he has petitioned the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate and halt the sale of the hotels. Additionally, he has expressed his intention to petition the Speaker of Parliament regarding the failure to seek permission before attempting to purchase the shares of the hotels.
Bryan Acheampong’s Involvement and Rock City Group Perspective
The Abetifi politician has described Mr Ablakwa’s allegations, indicating any wrongdoing in Rock City’s proposal to purchase 60% of shares in SSNIT’s four hotels, as false and baseless. The NPP politician and Minister of Food and Agriculture argues that he is separate from Rock City as a corporate entity.
As a non-executive director of the hotel, he maintains that he does not need to seek a certificate of clearance from the Speaker, citing his longstanding involvement in business before becoming a public official. For him, the divestiture from Rock City Group is entirely legitimate.
However, when Mr Acheampong was asked to clear the air on Joy News about whether there is a payment plan for acquiring the SSNIT shares in the four hotels, he did not provide a concrete answer. Instead, he emphasised the distinction between him (Bryan Acheampong) and Rock City Group, explaining that Rock City has its board and management that handle the company’s daily operations. This segment can be found at the show’s 5-minute 45-second mark, published on YouTube on May 21, 2024.
Despite this, the only clue provided was the supposed bid amount by Mr Acheampong’s Rock City Group for the four hotel shares. From the 20 minutes 45 seconds on the Good Morning Ghana Show on Metro TV on May 25, 2024, the Chief Executive Officer of the State Transport Company Limited, Nana Akomea, revealed that Mr Acheampong’s bid was $20 million higher than that of the second bidder.
With the number of issues raised against the divestment of the SSNIT interest in the four hotels, it remains to be seen if the Trust will proceed with the transaction.
