The Social Security and National Insurance Trust (SSNIT) has addressed recent discussions on Metro TV’s “Good Morning Ghana” program, which covered SSNIT’s decision to divest 60% of its stake in six hotels within its investment portfolio. Management has provided clarity on the objectives and process behind this strategic move.
Objectives of the Strategic Investor Search
SSNIT emphasized that the primary goal of engaging a strategic investor is to boost efficiency, profitability, and shareholder value, and ensure the long-term sustainability of the SSNIT Pension Scheme. To achieve these aims, SSNIT adhered to International Competitive Tendering (ICT) processes, as mandated by the Public Procurement Act, 2003 (ACT 663), and its amendments under ACT 914.
Commencement and Progress of the Process
The Trust initiated the process by hiring a Transaction Advisor through the ICT procurement method. Advertisements were published in the Daily Graphic on November 14, 2018, the Ghanaian Times on November 15, 2018, and The Economist magazine in its January 5-11, 2019 edition. By the deadline of January 16, 2019, fifteen firms had expressed interest, with six shortlisted and issued Request for Proposal (RFP) documents.
Approval for the selection of a Transaction Advisor was sought from the Central Tender Review Committee (CTRC) on December 12, 2019, and granted on December 24, 2019.
Further Steps and Current Status
To further this initiative, additional advertisements for an Expression of Interest (EOI) for a strategic partner were placed in the Daily Graphic on February 3, 2022, the Ghanaian Times on February 7, 2022, and The Economist magazine on February 26, 2022.
Upon technical and financial evaluation of the proposals, Rock City Hotel emerged as the top candidate. Rock City Hotel is now in negotiations to purchase a 60% stake in Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel, and Elmina Beach Resort. However, bids for Busua Beach Resort and the Trust Lodge were not successful and are excluded from this transaction.
Investigation by CHRAJ
The Commission on Human Rights and Administrative Justice (CHRAJ) has been petitioned to conduct a comprehensive investigation into the sale of SSNIT hotels, as noted during the Metro TV program. In response, SSNIT has decided to withhold further comments on the matter but has assured full cooperation.with CHRAJ during its investigation.
Assurances to Stakeholders
SSNIT reassures pensioners, contributors, and the public of its unwavering commitment to prudent management of the Trust’s affairs to ensure the sustainability of the Pension Scheme.
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