Shocking revelation on the floor of parliament when the Minister of Employment and Labour Relations, Ignatius Baffour Awuah mentions National Pensions Regulatory Authority (NPRA) approval of the sale of 60% of SSNIT’s shares in its hotel investment portfolio including popular Labadi Beach Hotel.
The sale of the four hotels including the Labadi Beach hotel was met with fierce opposition and criticism from NDC’s Okudzeto Ablakwa and other political commentators who argue that due processes were not followed and argue that the Labadi Beach Hotel is financially crippled hence government’s decision.
The Minister of Employment and Labour Relations, Ignatius Baffour Awuah during a session on the floor of parliament mentioned that all due processes have been complied with and the sale of the four hotels have been approved by the NPRA following a directive to SSNIT on June 28 to suspend its negotiations with Rock City over the sale of four hotels for an evaluation and engagement.
Remarks Made by Employment Minister Ignatius Baffour Awuah on Sale of SNNIT Shares
Yes, it is true that NPRA came up with a directive, but I would appreciate it if my brother, my colleague, really read the directive from NPRA. It said it needed to be furnished with all information relating to the sale of the hotels, which SSNIT has since done that.
So, it wasn’t like a direct something that SSNIT should not go ahead to do anything, but then, SSNIT can only go ahead when NPRA, which is the regulator within the field, had actually certified that they have seen all the documentation and the processes, and they think that we are good to go.
Yes, so, as a minister, I can tell you on authority that NPRA has since indicated that they have seen the processes, and they think that SSNIT can go ahead.
SSNIT considered only the sale of shares for its hotel investment portfolio as a strategic decision after multiple attempts at restructuring proved insufficient.
70-60% of its shares are deemed the most viable solution to prevent further depletion of resources and to bring in private participation.
Is it a good business activity? Yes, I want to believe my colleague is listening to me fully, well because I answered by saying that some of the investments are either making low returns or making losses.
So it is not in all cases that we are making losses, but even for those that are making profits, the returns are low.
