According to Hon. Samuel Okudzeto Ablakwa, recently acquired documents containing disturbing information regarding the sale of SSNIT hotels implicate Hon. Bryan Acheampong’s Rock City Hotel and SSNIT, revealing further damning evidence of their involvement in the scandal.
He pointed out that Dr. Sam Mensah of SEM Capital, the Transaction Advisor, submitted a letter to the SSNIT Board of Trustees on May 24, 2024, detailing SEM’s expert evaluation of Rock City’s proposal to acquire the four SSNIT hotels.
He highlighted that a memo from SEM Capital reveals that Rock City’s latest proposal of US$61.20 million includes an instalment plan, with an initial payment of US$30.80 million and the remaining balance to be paid over 24 months, but fails to provide assurance that the necessary funds are available.
According to Ablakwa, SEM Capital observed that the payment plan is solely reliant on Rock City’s cash flows, without any guarantee or credit enhancement from a banking institution.
“There is no indication of ability to pay. The arrangements for the transfer of the shares do not satisfy the objectives of SSNIT as contained in the TOR for this transaction. Transfer of the management and ownership will take 2 years”.
Hon. Samuel Okudzeto Ablakwa
The Member of Parliament further alleged that the 2-year instalment plan was not equally offered to all bidders participating in the SSNIT hotels sale, raising concerns about fairness and transparency in the process.
Ablakwa also emphasised that unlike Rock City, other investors who submitted bids were not afforded the flexibility to negotiate a payment plan, highlighting a potential disparity in the treatment of bidders.
He pointed out that Rock City’s proposal lacks a crucial bank guarantee, which typically provides a secure assurance of payment, further raising concerns about the credibility of the offer.
“Rock City does not have cash reserves to support the instalment payments”. – Hon. Samuel Okudzeto Ablakwa
Ablakwa Questions Rock City’s Financial Credibility
Furthermore, Hon. Samuel Okudzeto Ablakwa asserted that Rock City’s financial capabilities are insufficient to support its instalment plan, which requires regular payments of US$7.8 million (GHS 109.7 million), casting doubt on the feasibility of their proposal.
He observed that Rock City’s proposal, which SSNIT was considering, failed to satisfy the essential requirement of providing conclusive evidence of their financial ability to complete the transaction, raising serious concerns about their capacity to fulfil the deal.
The Member of Parliament further alleged that Rock City’s proposal fails to disclose or provide clarity on the source of funds to pay the outstanding balance of the acquisition price, raising concerns about the transparency and legitimacy of their financing plans.
“It’s crystal clear from SEM Capital’s professional appraisal that SSNIT discriminated in favour of Hon. Bryan Acheampong’s Rock City. This is always a feature in conflict of interest transactions”.
“SEM Capital’s Memo badly exposes SSNIT Board Chair, Hon. Elizabeth Ohene who wrote a few days ago (on June 26, 2024) dishonestly and blasphemously claiming this is such a clean transaction which she is willing to subject to investigations by God’s angels when she and her board were in possession of this terribly putrid May 24, 2024 report from her own Transaction Advisor”.
Hon. Samuel Okudzeto Ablakwa
As such, Hon. Samuel Okudzeto Ablakwa emphatically declared that the highly questionable transaction between SSNIT and Rock City Hotel must be out rightly cancelled, not merely suspended, due to its egregious nature and potential for harm.
Ablakwa vowed to continue providing robust and unyielding parliamentary oversight, serving the Ghanaian people with dedication, courage, and integrity, undeterred by the numerous court cases, which he believes will not silence him from speaking truth to power and holding leaders accountable for their actions.
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