The Management of Social Security and National Insurance Trust (SSNIT) has issued a response to Hon. Samuel Okudzeto Ablakwa’s concerns regarding its decision to divest 60% of its stake in six hotels within its investment portfolio.

According to the press release, SSNIT aims to form a strategic partnership to attract investment capital for upgrading the hotels and gain expertise in their management.

Furthermore, the Trust noted that the primary goal of securing a strategic investor is to enhance the SSNIT Pension Scheme’s efficiency, profitability, and long-term sustainability, ultimately boosting shareholder value.

The press statement also revealed that SSNIT adhered to the International Competitive Tendering (ICT) process, as mandated by the Public Procurement Act (2003, Act 663, as amended by Act 914), to select a strategic investor through a transparent and competitive process.

“The Trust commenced the process with the engagement of a Transaction Advisor through the ICT method of procurement, with publication of advertisements in the Daily Graphic on 14th November, 2018 and in the Ghanaian Times on 15th November, 2018. The advertisement was also published in an international magazine, The Economist in its January 5-11, 2019 edition”.
SSNIT

As such, the Trust informed, through the press statement, that by the January 16th, 2019 deadline, 15 firms had expressed interest in bidding, with 6 ultimately shortlisted and receiving Request for Proposal (RFP) documents.

Furthermore, the Trust stated that it sought approval from the Central Tender Review Committee (CTRC) on December 12, 2019, to appoint a Transaction Advisor, which was subsequently granted on December 24, 2019.

SSNIT also noted that following the selection of the independent Transaction Advisor to guide the selection of a Strategic investor amongst others, further advertisements for an Expression of Interest (EOI) for a Strategic Partner for the SSNIT Hotels were placed in newspapers.

The statement further specified that the newspapers used for the advertisements were the Daily Graphic (February 3, 2022), the Ghanaian Times (February 7, 2022), and the Economist Magazine (February 26, 2022).

Nine Companies Submit Proposals for SSNIT Hotel Investment

Furthermore, the Trust reported through the press statement that nine companies submitted proposals by the March 23, 2022 deadline in response to the advertisements.

As such, SSNIT announced that six companies were shortlisted from the nine that responded and received Request for Proposal (RFP) documents.

SSNIT also revealed that it invited the qualifying firms to open their financial proposals, and after a thorough technical and financial evaluation, Rock City Hotel emerged as the top contender.

“Based on the criteria set out in the RFP, Rock City Hotel submitted the best and strongest technical and financial proposal amongst those received. Consequently, it is in negotiation with SSNIT to buy a 60% stake in each of the four (4) hotels (Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel and Elmina Beach Resort). Bids for Busua Beach Resort and the Trust Lodge were considered to be unsuccessful so they are no longer part of the hotels covered in this process”.
SSNIT

Moreover, the statement noted that the process of securing a strategic investor is nearing its final stages, but has not yet been concluded.

The press statement also acknowledged that Hon. Samuel Okudzeto Ablakwa has filed a petition with the Commission on Human Rights and Administrative Justice (CHRAJ), requesting a comprehensive investigation into the sale of SSNIT hotels.

Accordingly, the Trust stated that, pending the CHRAJ investigation, its Management will refrain from further comment, underscoring its commitment to full cooperation throughout the investigation process.

As such, SSNIT reaffirmed its dedication to prudent management of the Trust’s affairs, ensuring the long-term sustainability of the Pension Scheme for the benefit of pensioners, contributors, and the general public.