The Member of Parliament for North Tongu Constituency in the Volta, Honorable Samuel Okudzeto Ablakwa has submitted a formal petition to the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate the sale of hotels belonging to SSNIT.
The National Democratic Congress Lawmaker, in his petition raised serious allegations against the Social Security and National Insurance Trust (SSNIT) and Honorable Bryan Acheampong, the current Minister for Food and Agriculture and Member of Parliament for the Abetifi Constituency.
The petition questioned the legality and ethics of SSNIT’s divestiture of its 60% stake in six prominent hotels in the country, suggesting potential abuse of power, corruption, and disregard for due process.
Honorable Ablakwa began by stating that on February 7, 2022, SSNIT issued a notice inviting expressions of interest from potential strategic partners to acquire control over its six hotel investments including Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort, and Trust Lodge Hotel.
He stated that the notice emphasized a preference for bidders interested in multiple hotels and stated that SSNIT would not provide any additional capital for the investments.
However, Honorable Ablakwa in his petition alleged that the said notice was a “façade” designed to mask a predetermined outcome favoring specific buyers.
According to Honorable Ablakwa SSNIT’s process lacked transparency and fairness, as indicated by a letter dated March 27, 2024, emphasizing that a letter, signed by the former Deputy Director-General, Kofi Osafo-Maafo, announced SSNIT’s intention to sell 60% of its stake in Ridge Royal Hotel to Rock City Hotel, a company reportedly owned by Bryan Acheampong.
Honorable Ablakwa further indicated that the letter detailed the valuation of SSNIT’s 60% stake in Ridge Royal Hotel at $8.4 million, with an additional $2 million earmarked for refurbishment, to be completed within twelve months’ post-agreement.
Despite this, Honorable Ablakwa pointed out that SSNIT’s actions diverge significantly from the original request for expressions of interest, suggesting a breach of due process.
Further, Honorable Ablakwa’s petition highlighted that the minority’s shareholders of Ridge Royal Hotel, holding a 4.9% stake, have resisted paying the requested $10.4 million, creating a scenario advantageous to Rock City Hotel’s acquisition objectives.
He also raised concerns about the valuation method SSNIT employed, hinting at possible undervaluation or mismanagement of state assets.
Furthermore, Honorable Samuel Okudzeto Ablakwa underscored in his petition that some of the SSNIT hotels, such as Labadi Beach Hotel, have shown substantial profitability, stressing that it paid dividends of GHS 25 million and GHS 10 million to SSNIT for the fiscal years 2022 and 2021, respectively, evidencing robust financial performance.
“The year to date, March 2024 Financial Performance Review of Ridge Royal Hotel also points to a healthy and robust business interest. (Financial Performance Review is attached and marked as Appendix 4)”.
Honorable Samuel Okudzeto Ablakwa, MP North Tongu
Honorable Ablakwa posited in his petition that SSNIT’s statutory obligation to pensioners is likely to be jeopardized if the “questionable” transaction is allow to go through, particularly given recent reports highlighting SSNIT’s potential future inability to meet its obligations due to alleged mismanagement.
Moreover, the Ranking Member of the Parliamentary Committee on Foreign Affairs Committee in his petition expressed dismay over the involvement of Honorable Bryan Acheampong in the controversial deal, claiming that Honorable Acheampong’s association to the transactions is a smack of potential conflict of interest.
He asserted that his recent checks with the Registrar of Companies revealed that Honorable Acheampong remains the sole beneficial owner and a director of Rock City Hotel, contradicting constitutional provisions prohibiting Ministers and MPs from holding offices of profit without appropriate parliamentary approval.
“Incontrovertible records obtained from the Parliamentary Committee on Office of Profit, as at the 13th of May 2024, indicate that Hon. Bryan Acheampong is not one of the 47 Members of Parliament who have applied and been granted permission to hold an office of profit or emolument by the Rt. Hon. Speaker between 2021 and 2024. (List obtained from the Committee on Office of Profit is attached and marked as Appendix 8)”.
Honorable Samuel Okudzeto Ablakwa, MP North Tongu
Reliefs Sought
Honorable Ablakwa in his petition urged CHRAJ to investigate the alleged breaches of due process, abuse of power, lack of transparency, and potential conflicts of interest.
He also raised concerns about the fate of the employees at these hotels should the sale proceed under the current controversial terms.
Among several reliefs, the North Tongu lawmaker called on CHRAJ to launches a full-scale, impartial investigation into the imminent prospective sale to Honorable Bryan Acheampong of 60% shares of hotels within SSNIT’S investment portfolio which raise fundamental concerns bothering on conflict of interest and abuse of power.
Honorable Ablakwa also urged CHRAJ to investigate SSNIT’s conduct and procurement processes regarding the transaction, particularly with the view to unraveling what led to the alleged violations of due process and unfair treatment.
Again, Honorable Ablakwa urged CHRAJ to investigates the appropriateness and ethical concerns of Honorable Bryan Acheampong who is a director and the sole beneficial owner of Rock City Hotel Limited, to be selected as the sole prospective buyer of 60% of SSNIT’s stake in the hotels within its investment portfolio, albeit under opaque circumstances, by his colleagues in government who were all appointed by President Nana Addo Dankwa Akufo-Addo.
Additionally, Honorable Ablakwa in his petition demanded CHRAJ to make a determination on the eligibility of Honorable Bryan Acheampong to participate in the transaction having regard to his non-compliance with Articles 78(3) and 98(2) of the 1992 Constitution.
Finally, Honorable Ablakwa emphasized that considering the 45-day-timeframe stipulated in the SSNIT’s letter of 27th March, 2024, which lapsed on 12th May, 2024, CHRAJ must take urgent steps to halt the “apparently sleazy sale” which according to him is not in the national interest.
