Sale of SSNIT Hotels: Group calls for immediate termination of deal, not suspension

The Forum for Public Sector Associations and Unions has called for the immediate termination of processes towards the sale of majority stakes of four hotels belonging to the Social Security and National Insurance Trust (SSNIT) to Rock City Hotel Limited.

The Forum said information it had gathered regarding the transaction suggested that Rock City hotel did not have the financial capacity to purchase and manage the said hotels outright.

At a press conference in Accra on Tuesday, the Group said a Report by SEM Capital, the financial advisors for the deal, suggested that the decision to sell 60 per cent stake of the SSNIT hotels to Rock City was not transparent.

Mr Isaac Bampoe Addo, Chairman of the Forum, said the Group would declare an industrial action if the government failed to terminate the transaction.

Concerns have been raised about the decision by SSNIT to select Rock City Hotel as the “strategic investor” to acquire 60 per cent stake in four of its hotels – Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, and Busua Beach Resort.

The Forum proposed changes in the management of the affected hotels to make them profitable as against their sale, which they said may not be in the interest of workers contributing to SSNIT.

“Having studied the latest report by the Transaction Advisor and other related documents on the sale of 60 per cent shares of four SSNIT hotels, The Forum for Public Sector Associations and Unions is convinced that the whole arrangement is not in the interest of the Ghanaian worker,” Mr Addo said.

“The FORUM hereby reiterates that the deal and the processes leading to their sale should be terminated immediately to forestall any industrial action,” the Group added.

The National Pensions Regulatory Authority (NPRA) has ordered SSNIT to suspend the transaction, after a Board meeting on June 25, 2024.

In a statement, the Authority said the directive was in compliance with Section 67(2) of the National Pensions Act, and to allow for evaluation of the processes involved.

The Forum said it was not convinced by the directive by the NPRA as it did not imply that the transaction would be cancelled.

“They are saying suspension and we are calling for termination. The two are not the same. If they fail to terminate this deal, we are going to strike,” Mr Addo said.

GNA