Nationwide strike declared over sale of SSNIT hotels
The Organised Labour has announced an indefinite strike action in response to the National Pensions Regulatory Authority’s (NPRA) approval for the Social Security and National Insurance Trust (SSNIT) to sell a 60% stake in four hotels to Bryan Acheampong’s Rock City Hotel.
Dr. Yaw Baah, the Secretary General of the TUC, expressed bewilderment over the NPRA’s decision to greenlight the deal without further consultations, despite previously instructing SSNIT to suspend the process.
In a statement issued after an emergency meeting on Friday, July 12, Dr. Baah emphasized the lack of transparency and consultation in the decision-making process. He underscored the TUC’s commitment to defending the interests of its members, prompting the directive for all union members to commence strike action starting Monday, July 15.
Minister for Employment, Labour Relations and Pensions, Ignatius Baffuor Awuah, announced in Parliament on Thursday, July 11, that the National Pensions Regulatory Authority (NPRA) has cleared the Social Security and National Insurance Trust (SSNIT) to proceed with its contentious plan to sell four hotels to Bryan Acheampong’s Rock City Hotel.
This decision comes despite significant public opposition and initial directives to halt the transaction.
Addressing Parliament, Minister Baffuor Awuah explained that the NPRA’s initial directive was issued to ensure all details of the sale were thoroughly reviewed.
“As Minister, I can tell you on authority that NPRA has since indicated that they had seen the processes and they think that SSNIT can go ahead,” he stated.
The Employment Minister elaborated that SSNIT’s decision to sell 60% of its stake in the four hotels is part of a broader strategy to enhance investment performance.
He emphasized that this move aligns with the primary objective of the scheme, which is to provide monthly pensions and related benefits to Ghanaian workers, ensuring their retirement income security.
“SSNIT’s decision to divest is also supported by its funding and investment objectives,” Mr. Awuah noted. He highlighted that SSNIT has been implementing various strategic measures to achieve its goals, including rebalancing its investment portfolio, increasing investment in fixed income, decreasing equity exposure, and restructuring non-performing investments.
Despite these explanations, the sale has faced backlash from the public and civil society organizations. North Tongu MP, Samuel Okudzeto Ablakwa, who brought attention to the deal, has raised concerns about the ability of Bryan Acheampong’s Rock City Hotel Limited to turn around the fortunes of the SSNIT hotels.
Mr. Ablakwa pointed out that Labadi Beach Hotel, Ridge Royal, and the other hotels involved are profitable, while Rock City Hotel Limited has consistently reported losses.
Mr. Ablakwa accused the transaction of being part of a larger pattern of state capture by appointees of the Akufo-Addo government.
He questioned the prudence of selling profitable state assets to a company with a track record of financial losses, suggesting that the deal might not be in the best interest of the public and pension contributors.
tigpost.co
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