The Executive Director of the Institute for Liberty and Policy Innovation (ILAPI) claims that, despite being one of the most organised state agencies, the Social Security and National Insurance Trust (SSNIT) has failed to effectively manage its assets and investments.
Mr. Peter Bismark Kwofie asserted that investments that involve top managerial skills have been a challenge for SSNIT.
He attributed the problem to political influence and how the various heads and board members are appointed by political leaders.
Mr. Kwofie stated that SSNIT invests in enterprises that demand top-tier management talents to optimise revenues.
But that is something SSNIT is not getting right.
Speaking on Frontline on Rainvow Radio 87.5FM, he said that because SSNIT is a state-owned institution, it is politically tainted and influenced to the point that political leaders play chess games with the institution.
He stated that the manner in which Chief Directors and Board Members are appointed, as well as the overall management of SSNIT, has had a negative impact on the organization’s investments.
The policy analyst noted that aside from these challenges, the government in power borrows from SSNIT, and its effects on the investments of the institution remain another issue we have to deal with.
He went on to state that these political interferences may have serious financial implications for SSNIT.
He was responding to the decision by SSNIT to sell some shares in its hotels to the Rock City Hotel, owned by Africa Minister Bryan Acheampong.
He said the decision for SSNIT to sell off some shares is a good strategic decision, but the one who won the bid is problematic considering that his government is in power.
He opined that the process may be politically tainted since the individual involved is a political person.
The board and management of SSNIT, he added, may want to please the one who appointed them, so they would do things to favour the political personality associated with the government.
He argued that some of the hotels in question are detrioriating, and the decision to sell some shares was good, but it should not be given to a politically exposed person.
He said SSNIT appears independent but is not independent at the managerial level due to political influence.
“SSNIT should start fighting for its independence. The corporate governance practices of SSNIT are top-notch. It beats all other state institutions and private entities.
However, political influence is affecting them. The managerial level of managing their assets is not the best. They ought to fight for their independence so it can maximise its profits.
The government should also limit how it touches the money of SSNIT. We need to protect the pensions of pensioners, and that can only be done if the political interference stops.”
By: Rainbowradioonline.com/Ghana
