It has emerged that the Social Security and National Insurance Trust (SSNIT) has lost US$11 million after liquidating three companies.
This was contained in a report by the Auditor-General for the year 2020.
The report revealed that SSNIT liquidated three companies with a total investment of US$14.7 million.
According to the report, SSNIT did not receive any returns from two of the companies for investments made since 2005.
“We noted from our review of investment files that, the Trust liquidated three companies with a total investment of US$14,768,153.00. The Trust had not received any returns from the companies for its investment for the past 15 years. The loss from the liquidations amounted to US$11,794,109”, the report said.
The report said the management of SSNIT inherited several non-performing legacy investments and efforts have been made to ensure that SSNIT gets the best deal when liquidations are evoked.
The report said the liquidation these companies led to a loss of US$11,794,109 of the Trust’s resources which could have been used to improve the pension’s funds.
As part of the recommendations, SSNIT has been asked to “investigate the non-performance of the investments with the aim of ensuring value for money and ensure that effective feasibility studies are carried out before investing”.
On the specific amounts involved Ningo Salt Limited (NSL), the amount lost by SSNIT reduced from the stated US$6.08 million to US$1.93 million.
The loan of US$4.15 million was granted through Ecobank Ghana Limited. Ecobank has fully repaid SSNIT with interest.
On Granite and Marbles Limited, SSNIT managed to retrieve its unpaid Social Security Contributions of GH¢428,337.07. All the loans were converted to equity prior to the liquidation, the report noted.
Meanwhile, Canada Investment Fund for Africa (CIFA) has been under liquidation since 2015.
As per the Fund Manager’s 2019 report to shareholders, the liquidation process is yet to be concluded.