Agric Minister not willing to back-off from purchase of 60% SSNIT stake in hotels
Member of Parliament for the North Tongu Constituency, Samuel Okudzeto Ablakwa, has said the Minister for Food and Agriculture, Bryan Acheampong is not willing to rescind his decision to purchase the Social Security and National Insurance Trust’s (SSNIT) 60% stake in four hotels – Labadi Beach Hotel, La Palm Royal Beach Hotel, Elmina Beach Resort and Ridge Royal Hotel.
This is despite the public backlash about the transaction which is a contravention of constitutional provisions, specifically citing Articles 78 (3) and 98 (2) of the 1992 Constitution.
According to Hon. Okudzeto Ablakwa, the Agric Minister’s persistence in getting the 60% stake in the four hotels is due to the huge annual profit recorded by the hotels, particularly Labadi Beach Hotel.
“Labadi Beach in 2023 recorded a profit of GHS 158m, up from the GHS 77m profit in 2022 which was also higher than the GHS 38m profit recorded in 2021 with the exception of 2020 where the hotel made losses due to the Covid pandemic.
“Labadi Beach Hotel last year paid dividends of GHS 25m to the Government and there are indications that this year, it will pay more.
“And so, because of the huge profits being recorded by the hotels, particularly Labadi Beach Hotel, Bryan Acheampong is still interested in the hotels and is not willing to back off and doing everything to see the deal through,” he quipped.
Adding that, contrary to claims that Rock City is recording impressive profits and is well managed, documents available to him reveal that Rock City is rather making losses.
“Rock City is making losses despite the propaganda that it is the best and well-managed.
“The hotel has not made a profit and is declaring losses,” he remarked speaking during the NorvanReports and Economic Governance Platform (EGP) X Space Discussion on the topic, “Fireside Tales of Public Deals: The SSNIT Story.”
Rock City according to Hon. Okudzeto Ablakwa, is expected to make some $61m in payment for SSNIT’s 60% stake in the hotels, which is below the fair market value of $121m for the Trust’s stake in the hotels.
Meanwhile, the management of SSNIT is moving forward with plans to sell the 60% stake they have in the four hotels.
According to Hon. Okudzeto Ablakwa, SSNIT has told Rock City to go ahead and conduct its final due diligence on the sale of the hotel assets.
“New information coming to me indicates that SSNIT wants to go ahead and sell its stake in the hotels to Rock City.
“They are adamant despite the pressure even from organized labour, and has told Rock City to go ahead and do its final due diligence on the transaction,” he quipped.
The MP for North Tongu Constituency has, however, noted that there will be a protest against the sale of SSNIT assets to the Minister for Agriculture on Tuesday, June 18, 2024.
“But on Tuesday, this coming Tuesday, we will protest against that decision and demonstrate to register our displeasure,” he added.
