Ghana’s leading policy think tank, IMANI Africa, has issued a strong warning against what it describes as dangerous and unlawful political interference in the country’s private pensions sector.
The organisation fears that recent developments, if left unchecked, could threaten the long-term retirement security of Ghanaian workers and destabilise confidence in the country’s financial system.
The alert was raised by Franklin Cudjoe, Founding President and Chief Executive Officer (CEO) of IMANI Africa, who called on labour unions, regulatory authorities, and the general public to resist ongoing attempts by some political appointees to “reassign pension fund management contracts to politically aligned firms,” without worker consultation.
According to IMANI Africa, political appointees in several State-Owned Enterprises (SOEs) are cancelling existing pension fund contracts and awarding them to preferred service providers.
These decisions, the group notes, are being made unilaterally and without any legal basis or input from workers, who are the rightful owners of the pension assets.
“Pension funds under Ghana’s Three-Tier Pensions System – particularly under the Tier-2 Defined Contribution scheme – are not the property of employers or government.
“They are individual investment accounts held in trust for workers by trustees, and once contributions are made, legal ownership vests in the worker”
IMANI Africa
The group stressed that any attempt by political actors to exert control over these funds is not only a violation of the National Pensions Act, 2008 (Act 766), but also a “dangerous precedent” that could lead to systemic collapse in the pensions industry.
Political Patronage
Describing the situation as “politically motivated contract terminations,” IMANI accused politically connected firms of seeking control over billions of cedis in worker savings, irrespective of performance or capacity.
The think tank recalled similar actions under the previous New Patriotic Party (NPP) government, where politicisation and mismanagement plagued the Social Security and National Insurance Trust (SSNIT), resulting in massive financial losses.
“If we allow this patronage culture to infect the Tiers 2/3 pension space, we risk triggering a systemic crisis in the pensions sector. It would undermine confidence, endanger worker retirement security, and deter responsible local and international investment”
IMANI Africa
Referencing the collapse of financial institutions in recent years, the group cautioned that pension fund mismanagement could produce a repeat of the banking sector crisis, where “depositors’ funds were grossly misused,” by politically shielded firms.
“The country has still not recovered from massive business failures in the banking and asset management industries.
“Just last week, we were told that the Attorney General is discontinuing prosecution in one of the cases involving a high-profile political figure”
IMANI Africa
Regulatory Failure and Labour Complicity
IMANI also called out the National Pensions Regulatory Authority (NPRA), accusing the current Chief Executive Officer of overstepping his legal mandate by directing the termination of service provider contracts.
“A regulator is not vested with the power of appointment of service providers of pension schemes,” IMANI cautioned. It explained that the NPRA CEO writing letters to terminate contracts of some service providers represents a serious breach of the law and regulatory overreach.
The think tank urged all labour unions, especially within the SOE sector, to oppose any politically driven interference in pension management, and called on workers to demand full transparency and participation in any proposed changes.
Ghana’s pensions industry currently manages over GHS80 billion in assets, a result of over 15 years of steady growth. IMANI warned that this progress could be eroded by shortsighted political gains and reckless contract reassignment.
Citing previous scandals, including the recent pension asset “haircuts” under the Akufo-Addo administration and ongoing concerns surrounding SSNIT’s financial health, IMANI underscored the urgent need to preserve the independence of the Tier-2 system.
“I feel personally motivated to take up this fight, in the interest of Ghanaian workers for the simple reason that Tier 2 is the only financial fallback most Ghanaians can retire to, considering the dark clouds hanging over SSNIT today”
Franklin Cudjoe, Founder And CEO of IMANI Africa
He called on President John Dramani Mahama to uphold his pledge to restore accountability and reset governance standards in Ghana. IMANI urged His Excellency and all stakeholders in his administration to act decisively and preserve the “independence of Ghana’s pension system.”
The organisation concluded with a call for vigilance, warning that its next public statement would “name and shame firms and persons behind attempts to appropriate pension funds as political spoils.”
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