The Social Security and National Insurance Trust (SSNIT) has issued a response to criticisms made by Ms. Sophia Akuffo, Ghana’s former Chief Justice, regarding the sale of its hotels.
The Trust expressed disappointment and concern over the former Chief Justice’s assertion that the SSNIT hotels were intentionally allowed to deteriorate in value, enabling insiders to acquire the assets for themselves, describing the claim as serious, unfortunate, and misleading.
“The attention of the Management of Social Security and National Insurance Trust (SSNIT) has been drawn to comments made by the former Chief Justice, Ms. Sophia Akuffo, on TV3’s Ghana Tonight’s program on Thursday, 25th July 2024”.
Social Security and National Insurance Trust (SSNIT)
SSNIT categorically denied allegations of deliberate mismanagement and neglect of its hotels, stressing that such baseless claims erode trust, undermine the integrity of the Pension Scheme, and jeopardize the hard-earned benefits of its contributors.
SSNIT further emphasized that unsubstantiated allegations of this nature, made by Ms. Sophia Akuffo, can spark unnecessary anxiety and mistrust among stakeholders, including pensioners, contributors, and investors.
As such, the Trust called for a fact-based and informed dialogue, supported by credible evidence, to ensure the continued stability, integrity, and confidence in the Pension Scheme.
The Trust also expressed concern that such unsubstantiated allegations can divert attention away from meaningful discussions and constructive engagement, hindering efforts to identify and address legitimate concerns and challenges facing the Pension Scheme.
SSNIT argued that contrary to the allegations, it had proactively implemented numerous initiatives over the years to enhance the performance and value of its hotel investments, prior to making the strategic decision to divest a portion of its shares to a specialized investor.
As such, the Trust reaffirmed that its decision to divest the hotels was carefully crafted to maximize returns on investment, while also ensuring the long-term viability and sustainability of the Pension Scheme, thereby safeguarding the interests of its contributors and beneficiaries.
SSNIT’s Comprehensive Revitalization Efforts
Furthermore, SSNIT highlighted that it had taken comprehensive measures to revitalize the hotels, including restructuring ownership, appointing experienced private hotel management companies, and implementing targeted changes in management and Board composition, where necessary.
The Trust emphasized that these measures were designed to achieve operational excellence, boost performance, and unlock sustainable growth.
SSNIT further revealed that it had provided significant financial backing, encompassing essential maintenance funding and strategic capital investments, to enhance the hotels’ competitiveness, upgrade their facilities, and drive business growth.
“As we have previously noted, although we have seen some improvement in the performance of the hotels, this has been far below what we require to finance growth and capital expenditure. Returns had been low or negative, and most of them had been making persistent losses and not paying dividends”.
Social Security and National Insurance Trust (SSNIT)
SSNIT stated that given the myriad challenges facing the hotels, the Trust deemed it necessary to explore the introduction of a strategic investor to revitalize the assets, stressing that, however, after careful consideration, it has now decided to terminate this initiative.
Amidst the decision by the Board and Management of the Social Security and National Insurance Trust (SSNIT) to seek a strategic investor to manage its hotels, numerous comments have appeared regarding the process.
While some of these opinions aim to educate the public on why it has become necessary for SSNIT to divest 60% of its shares in the hotels to a private investor, who will manage them and pay dividends, other comments seem to question the institution’s credibility.
However, SSNIT stated that despite these negative assertions, it is essential for people, particularly workers, to understand that the SSNIT Scheme is sound and that the pensions paid to retirees accurately reflect their basic salaries earned during their active service.
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