The Management of the Social Security and National Insurance Trust (SSNIT) has informed former Chief Justice Sophia Akuffo that her accusation about the failed sale of the hotels is unsubstantiated.
Sophia Akuffo had alleged that the SSNIT manager deliberately neglected the hotels to benefit personally. She made these claims in an exclusive interview with TV3’s Alfred Ocansey on Thursday, July 25.
“Of course, SSNIT will justify it because they have run down the hotels and just like in the public sector a lot of public properties have been run down just so that the value will be run down and always at the end of some cycle or the other they do sweet heart deals and do this distribution among themselves,” she said.
However, SSNIT in a statement issued on July 29 reacting to the comment by Sophia Akuffo said the allegations by the former Chief Justice are “false and undermines the integrity and confidence in the Pension Scheme.”
In response to the former Chief Justice’s claim, SSNIT explained that it restructured the hotels’ ownership, introduced private management companies, made necessary changes to management and the Board, and provided financial support for maintenance and upgrades to enhance the hotels’ competitiveness.
SSNIT also clarified its reasons for initially deciding to sell its shares, although this decision has since been canceled.
“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.
Hence, the steps to bring in a strategic investor, which we have now terminated,” SSNIT stated.
“We wish to emphasize that the allegations of deliberate mismanagement of SSNIT hotels are false and undermines the integrity and confidence in the Pension Scheme.
Allegations of this nature, without substantiated evidence, create unnecessary tension among stakeholders and potentially detract the public from the constructive dialogue needed to address genuine issues,” SSNIT added.
SSNIT reassured pensioners, contributors, and the public of its dedication to managing the Trust’s assets to ensure the Scheme’s long-term sustainability.
It’s worth noting that SSNIT announced the cancellation of the controversial hotel share sale on Friday, July 12, following significant opposition from various stakeholders.
“The Board and management of Social Security and National Insurance Trust (SSNIT) wish to inform the public that the process to divest 60% of SSNIT’s stake in the hotels has been terminated,” Board Chair of SSNIT Elizabeth Akua Ohene said in the statement.
