Rock City to acquire SSNIT stake in hotels for $61m; below market value of $121m
Member of Parliament for North Tongu Constituency, Samuel Okudzeto Ablakwa, has revealed that Rock City Hotel owned by the Minister for Food and Agriculture, Bryan Acheampong, is readying itself to make payment worth $61m to acquire 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.
The $61m to be paid for SSNIT’s 60% stake in the four hotels according to Hon. Okudzeto Ablakwa, is below the assets’ fair market value of $121m.
Speaking on the NorvanReports and Economic Governance Platform (EGP) X Space Discussion on the topic, “Fireside Tales of Public Deals: The SSNIT Story,” on Thursday, June 13, Hon. Okudzeto Ablakwa quipped the sale of SSNIT’s assets to Rick City offers no value for money to SSNIT, pensioners who are contributors to the scheme and the Government itself.
“There is no value for money in the sale of SSNIT’s assets to Rock City, documents that I have in my possession state that SSNIT’s stake in the hotels will be sold to Rock City for $61m as against the true market value of $121m for the assets,” he quipped.
Meanwhile, SSNIT has called the bluff of Organised Labour and Ghanaians and is moving forward with its plans to sell off its 60% stake to Rock City Hotel.
This is despite agitations by Organised Labour and public outcry by the Ghanaian citizenry against the sale of the state assets to the Minister.
“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 organised labour, and has told Rock City to go ahead and do its final due diligence on the transaction,” he quipped.
“But on Tuesday, this coming Tuesday, we will protest against that decision and demonstrate to register our displeasure,” he added.
Background
The reported sale of SSNIT’s stake in six hotels was raised by the National Democratic Congress (NDC) Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa.
He has since petitioned the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate the various allegations, including conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism and graft.
In his petition, Mr Ablakwa highlights what he views as violations of constitutional provisions, specifically citing Articles 78 (3) and 98 (2) of the 1992 Constitution. He contends that these actions represent significant breaches of legal and ethical standards.
Additionally, in a Facebook post on Friday, May 17, 2024, Mr Ablakwa argued that Bryan Acheampong’s alleged involvement in the hotel sale without the permission of the Speaker of Parliament constitutes a breach of parliamentary protocol regarding holding offices of profit.
This, according to Mr Ablakwa, is a serious violation that requires thorough investigation and accountability.
“In my petition, I am inviting CHRAJ to investigate grave matters bordering on conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft.”
“I have also drawn attention to blatant violations of Article 78(3) and 98(2) of the 1992 Constitution as diligent checks from Parliament’s Committee on Office of Profit reveal that Hon. Bryan Acheampong has not applied and does not have the permission of the Speaker of Parliament to hold an office of profit,” he wrote.
