The National Pensions Regulatory Authority (NPRA) has directed the Social Security and National Insurance Trust (SSNIT) to suspend the ongoing process of engaging Rock City Hotel Limited as the Strategic Investor for the sale of four prominent hotels.
These properties include La Palm Royal Beach Hotel, Elmina Beach Resort, Busua Beach Resort, and Ridge Royal Hotel, collectively valued as critical assets within Social Security and National Insurance Trust’s investment portfolio.
“As you may be aware, Section 67(2) of the Act requires us to issue relevant guidelines to guide your investment decisions. In furtherance of this requirement, you are hereby directed by the Board of the Authority to suspend all the processes seeking to engage Rock City Hotel Limited as the Strategic Investor in matter of the sale of the above-mentioned hotels”
John Kwaning Mbroh, Chief Executive Officer, NPRA
The directive was communicated through an official letter from the National Pensions Regulatory Authority’s Chief Executive Officer, John Kwaning Mbroh, addressed to the Social Security and National Insurance Trust’s Director General.
The correspondence acknowledged the receipt of documents from the Social Security and National Insurance Trust on June 7, 2024, which were in response to the NPRA’s initial request for information regarding the Trust’s intentions to involve Rock City Hotel Limited in the transaction.
Board Meeting Insights
The National Pensions Regulatory Authority’s Chief Executive Officer, John Kwaning Mbroh, pointed out that the NPRA’s decision follows an inconclusive presentation by the Social Security and National Insurance Trust officials before the NPRA Board on June 25, 2024.
He noted that during the meeting, the Social Security and National Insurance Trust officials sought to provide comprehensive insights into the strategic rationale behind choosing Rock City Hotel Limited and the broader implications of the sale.
The Chief Executive Officer of the National Pensions Regulatory Authority, John Kwaning Mbroh noted that despite their efforts, the Board found the explanations insufficient to make a final determination on the matter, necessitating further scrutiny.
In his letter, Mr Mbroh highlighted the NPRA’s statutory mandate under Section 7(g) of the National Pensions Act, 2008 (Act 766), which includes regulating and monitoring the implementation of the Basic National Social Security Scheme (BNSSS).
His letter emphasized the importance of ensuring that the Social Security and National Insurance Trust’s investment decisions align with the guidelines issued by the NPRA to safeguard the interests of pension contributors and beneficiaries.
Legal and Regulatory Framework
Citing Section 67(2) of the National Pensions Act, the NPRA underscored its responsibility to provide oversight and issue relevant guidelines for the Social Security and National Insurance Trust’s investment activities.
The Chief Executive Officer of the National Pensions Regulatory Authority, John Kwaning Mbroh further noted that the directive to suspend the engagement with Rock City Hotel Limited is a precautionary measure aimed at ensuring that all potential risks and benefits are thoroughly evaluated before proceeding with such a significant transaction.
Ongoing Evaluations and Stakeholder Engagement
He stated that the NPRA is currently engaging with the Minister for Pensions and other relevant stakeholders to gather more comprehensive insights into the proposed sale and the selection of Rock City Hotel Limited as the Strategic Investor.
This collaborative approach, the Chief Executive Officer of the National Pensions Regulatory Authority, John Kwaning Mbroh argued aims to ensure that any decision made will be in the best interest of all parties involved, particularly the contributors to the Basic National Social Security Scheme.
The letter assured the Social Security and National Insurance Trust that further directives would be issued once these engagements and evaluations are concluded.
The Chief Executive Officer of the National Pensions Regulatory Authority, John Kwaning Mbroh concluded his letter by instructing SSNIT to halt all processes related to the sale of the mentioned hotels until the NPRA is done with its engagement and evaluation.
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