President Nana Addo Dankwa Akufo-Addo has dismissed the controversy surrounding the decision by the Social Security and National Insurance Trust (SSNIT) to sell its shares in certain hotels as unwarranted.
Addressing the 12th Quadrennial Delegates Congress of the Trades Union Congress (TUC) in Accra, the President emphasized that the strong financial performance of SSNIT, as reflected in its 2023 report, should allay concerns about the institution’s actions regarding non-performing assets.
President Akufo-Addo pointed to SSNIT’s financial health as a testament to the soundness of its recent decisions, including the move to offload underperforming assets in its portfolio.
“Take note of the improved performance of SSNIT, which recently announced a surplus of GH₵230 million on its operations.
“This should be reassuring to organized labor and perhaps bring into sharper relief the unnecessary controversy that was recently generated by SSNIT’s efforts to unload non-performing assets in its hotel portfolio.”
President Nana Addo Dankwa Akufo-Addo
The President’s remarks come in the wake of widespread debate over SSNIT’s attempted sale of its shares in several hotels, a decision that drew criticism from various quarters, including some labor unions and pensioners who expressed concerns over the implications for their pensions.
President Akufo-Addo underscored the need for careful consideration in decision-making, particularly when such decisions have long-term consequences for the welfare of pensioners.
“All of us need to be measured when it comes to making decisions or pronouncements that will affect the long-term interests of pensioners,” the President advised. His comments were a clear reference to the uproar that ensued following SSNIT’s announcement of its intention to divest from its hotel assets, which some critics viewed as a threat to the stability of pension funds.
Call for Dialogue
In his address, President Akufo-Addo also urged organized labor to prioritize dialogue with the government over resorting to strikes and other forms of industrial action.
President Akufo-Addo emphasized that constructive engagement is essential for addressing the concerns of workers and ensuring that their interests are protected without causing unnecessary disruptions to the economy.
“The government is always open to dialogue, and I encourage organized labor to engage more with us on their concerns instead of resorting to strikes.”
President Nana Addo Dankwa Akufo-Addo
President Akufo-Addo acknowledged the critical role that labor unions play in advocating for workers’ rights but stressed that collaboration and open communication are key to finding mutually beneficial solutions.
The controversy surrounding SSNIT’s decision to sell its hotel assets began when the trust, in a bid to streamline its investment portfolio, identified several hotels that were underperforming and decided to divest from them. The move according to SSNIT was part of a broader strategy to improve the efficiency of its investments and maximize returns for contributors.
However, the decision was met with resistance from various stakeholders, including labor unions and pensioner groups, who raised concerns about the potential loss of value and the impact on the trust’s ability to meet its long-term obligations to pensioners. The ensuing public debate put SSNIT under significant pressure, ultimately leading the trust to reconsider its position.
“It is my understanding that the recent issue is the only time in history where SSNIT has determined to back down on its sale of non-performing assets.”
President Nana Addo Dankwa Akufo-Addo
President Akufo-Addo’s comments at the TUC Congress were a clear signal of the government’s support for SSNIT’s efforts to optimize its investment portfolio. His call for measured decision-making and increased engagement between organized labor and the government reflects a broader commitment to ensuring the sustainability of the country’s pension system and the welfare of Ghanaian workers.
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