Mr. Palgrave Boakye-Danquah, the government’s spokesperson on governance and security, has accused former President John Dramani Mahama for the losses of six hotels that the Social Security and National Insurance Trust intends to sell 60% of.
He said the former National Democratic Congress (NDC) under the former president is to blame for the failures of the six hotels.
Rock City started negotiations with SSNIT to buy a 60% stake in each of the four out of six hotels: Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel, and Elmina Beach Resort.
But Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has petitioned the Human Rights and Administrative Justice (CHRAJ) to investigate a possible conflict of interest in the matter.
He has also petitioned President Akufo-Addo to, with immediate effect, halt the transaction between SSNIT and Rock City Hotel.
But speaking on the issue, Mr. Palgrave Boakye-Danquah shot down claims that there was a conflict of interest in the ongoing transaction.
He pointed out that Rock City Hotel, owned by Bryan Acheampong, the Minister of Agriculture, was the hotel that provided and exceeded the amount SSNIT requested for the four hotels.
He said SSNIT was justified in the sale of its 60% stake in four of its hotels to Rock City Hotel Limited because it has, for the past 14 years, run losses.
“Let’s be fair to ourselves. SSNIT has several investments, and most of its investments are in hotels. So they have realised that over the past 14 years, they have not recorded profits but losses, and who was in power during that period? It was former President John Dramani Mahama. I can say with confidence that Mahama collapsed these hotels. Over the past 14 years, these hotels have run at losses, and so they have always requested maintenance funding and capital injection. Their expenditures kept rising, but they kept making losses.”
He explained that after this government took over, SSNIT engaged the services of a transactional advisor to help it evaluate the hotels and look for a strategic investor.
Fifteen (15) companies, he said, bidded, and they included Phoenix Africa Capital Management Ltd., Standard Charted Bank, Deloitte and Touché, PwC, EY Advisory Services, Cornerstone Capital Advisors, KPMG, SEM, Capital Advisors, and Colliers International, among others.
An evaluation panel recommended EY Advisory Limited, Colliers International, KPMG Limited, PwC, Deloitte & Touché, and SEM Capital as firms with the best scores to be invited to submit technical and financial proposals for a transaction advisor based on the amount they charged for their services.
According to him, “SEM Capital’s bid was the lowest received, and the highest was USD 1,363,000 made by KPMG. SEM Capital emerged as the most competitive and was, therefore, selected as the transaction advisor because it requested $491,000 as cost for it’s services.”
Speaking with Kwabena Agyapong on Frontline on Rainbow Radio 87.5FM, he said six companies were shortlisted as possible strategic investors for the 60% stake in the SSNIT hotels, and they were Rock City Hotel Limited, Yaw Addo Development, Spartan-Ives, Temple Investments, Westridge Developers Ghana Limited, and Luxor Hotels Limited.
“The Rock City Hotel bid for the four hotels was above the valuation placed on the hotels, with a total bid of 60% as USD 61.2 million compared to the total value of USD 59.1 million,” he stated.
Mr. Palgrave Boakye-Danquah stressed that “there is no conflict of interest and SSNIT’s quest to restructuring non-performing companies was a priority in its decision to give out the hotels to Rock City which emerged as the best strategic investor.
“The frequent losses, frequent requests for maintenance funding, capital injections required, high capital expenditures, and the need for strategic partnership are the reasons SSNIT is selling these shares. There is no conflict of interest. The bid was opened in 2018 and was public. Bidders were invited from across the world, and companies came to demonstrate their financial muscles, and Rock City topped them all. I have travelled across the world and been to over 120 countries in the world, and I will tell you, there is no country in the sub-region from Mali to Niger, Togo, Egypt, Liberia, Gabon, Benin, Sierra Leon, and Gambia. There is not a single hotel that is bigger than Rock City. On terms of financial investments, there is no single hotel that is bigger than Rock City.”
By: Rainbowradioonline.com/Ghana
