The Social Security and National Insurance Trust (SSNIT) has stated that selling its 60% ownership in its hotels to Rock City Hotel Limited, which is owned by Bryan Acheampong, Minister for Food and Agriculture and Member of Parliament for the Abetifi Constituency, was appropriate.
The Director General of SSNIT, Kofi Bosompem Osafo Maafo, stated that all of the hotels listed for sale had not produced earnings or given dividends in years.
Addressing a press conference on Monday, July 8, 2024, he said: “I don’t think anyone running an investment funding in the world would be sitting and earning substandard returns..we have to address the issue,” he explained.
“If you look at these hotels, they are capital-intensive businesses, they require periodic capital expenditure, continuous capital expenditure. SSNIT doesn’t have the necessary funding to do that. The businesses have been making consistent losses.”
“We’ve been through quite a lengthy process to do so. Bear in mind, we’ve also tried having external management companies running the SSNIT hotels and that hasn’t resolved the problem either.
“So, for us, we look at it twofold, that we are looking to resolve a problem and do so with the introduction of a strategic investor and we outlined the reasons there.”
Mr Osafo Maafo also stated that SSNIT did not breach any procurement laws as due processes were followed during the bidding process.
Giving details on the performance of each of the hotels, he said La Palm Royal Beach Hotel made losses in eleven out of the past fourteen years and has not paid any dividend since it started operations.
It’s current returns and debts outstanding, including SSNIT contributions on equity, among others, are averagely standing at -4.2% (2012–2017).
Elmina Beach made losses in nine of the past fourteen years and has also not paid any dividends to SSNIT.
The average return on equity for Elmina Beach is negative 4.8% for the period of 2010 to 2017.
Busua Beach Resort made losses in nine (9) out of the past fourteen (14) years. Has not paid dividends in all its years of operation. The average Return on Equity for Busua Beach Resort is (negative) -31.7% for the period 2010 to 2017, he said.
Labadi Beach Hotel made losses in two (2) out of the past fourteen (14) years but has consistently paid dividends over the years.
The average Return on Investment forLabadi Beach Hotel was 1.7% (2012–2017),
Return on Equity and has averaged 5.2% for the periods 2012 and 2022.
By: Rainbowradioonline.com/Ghana
