The Center for Ethical Governance and Administration (CEGA) has issued a scathing press statement demanding the resignation of the Board of Trustees of the Social Security and National Insurance Trust (SSNIT) and the National Pensions Regulatory Authority (NPRA) Board amidst escalating controversy over the sale of SSNIT-owned hotels.
The turmoil began with the abrupt removal of Dr. John Ofori-Tenkorang as Director General of SSNIT, which triggered a series of contentious events culminating in nationwide industrial action by Organized Labour.
The catalyst for the unrest was the swift appointment of Mr. Kofi Bosompem Osafo-Maafo as the new Director General, who promptly initiated a procurement process to divest 60% stake in six prominent hotels, including the Labadi Beach Hotel and the La Palm Royal Beach Hotel in Accra.
Critics allege that the procurement process lacked transparency and was marred by corruption and conflicts of interest, notably involving Rock City Hotel owned by Hon. Bryan Acheampong, the Member of Parliament Abetifi, who is also the Minister for Agriculture.
Despite objections raised by the Transaction Advisor regarding financial proposals from Rock City Hotel, SSNIT proceeded with negotiations, prompting scrutiny and condemnation from various quarters.
The NPRA intervened, directing SSNIT to suspend the controversial procurement process citing violations of regulatory guidelines. However, subsequent developments have seen conflicting messages emerge, with the Minister for Pensions advocating for the sale to proceed despite NPRA’s directive.
In a surprising twist, Rock City Hotel has since withdrawn its bid, citing reputational damage and negative publicity surrounding the deal. Mr. Kofi Bosompem Osafo-Maafo acknowledged significant hurdles in negotiation terms but stopped short of halting the transaction outright.
CEGA has called for decisive action, asserting that SSNIT’s management must cancel the sale to restore trust and integrity. Moreover, they insist that both the SSNIT and NPRA Boards resign immediately, citing their failure to uphold governance standards and provide adequate oversight.
As the controversy continues to unfold, stakeholders await further developments amidst growing public discontent and calls for accountability within the pension management sector.
Below is the full press statement from CEGA
PRESS STATEMENT Center for Ethical Governance and Administration
For Immediate Release
13th July, 2024
THE BOARD OF TRUSTEES OF THE SOCIAL SECURITY AND NATIONAL INSURANCE TRUST (SSNIT) AND NPRA BOARD SHOULD RESIGN
The CEGA has observed that, recent events emanating from the corridors of the SSNIT since the former Director General, Dr John Ofori-Tenkorang was suddenly pulled out have taken several twists and turns up to this time where Organized Labour, has unanimously decided to begin a simultaneous industrial action throughout the country following a controversial sale of SSNIT hotels.
What may have sparked the industrial action was the immediate appointment of Mr. Kofi Bosompem Osafo-Maafo who was previously the Deputy Director General for Properties and Investments, as the new Director General and his decision to quickly conclude a procurement processes to offload 60% (sixty-percent) of the SSNIT stake in 6 (six) hotels. The hotels included, the Labadi Beach Hotel and La Palm Royal Beach Hotel in Accra. The rest are Ridge Royal Hotel in Kumasi, Ashanti Region, and the Elmina Beach Resort, located in Elmina in the Central Region. The others are Busua Beach Resort, near Dixcove and the Trust Lodge Hotel in Takoradi in the Western Region.
But the procurement process was said to have been riddled with lack of transparency, corruption, procurement breaches in addition to conflict of interest situation as one of the bidders was Rock City Hotel owned by Hon. Bryan Acheampong, a Member of Parliament for Abetifi Constituency and a current Minister for Agriculture.
Contrary to the Transaction Advisor’s damming report on the financial proposals of Rock City Hotel, SSNIT was still interested in dealing with Rock City. The SSNIT management defended the transaction, but failed to release information on the transaction for scrutiny. The SSNIT Board of Trustees Chair also defended the transaction, and put her integrity and her job on line to justify the sanctity of the transaction. In defending the transaction process, the Board Chair noted among others that ‘’I am able to say with utmost certainty that the process that led to the selection of Rock City was clean, above board and met every rule and regulation and can withstand every scrutiny.’’ She added ‘’indeed if they should find any evidence of corruption, I will assume and accept responsibility and expect to be prosecuted.’’
In the heat of the discussions, Organized Labour requested a meeting with the President Akufo-Addo for discussions to stop the sale, but he rather urged SSNIT to continue the sale.
The National Pensions Regulatory Authority (NPRA) directed SSNIT to suspend the procurement process. In a letter to SSNIT, the NPRA noted that, ‘’As you may be aware, section 67(2) of the National Pensions Act (Act 766) requires us to issue relevant guidelines to guide your investments decisions.’’
In furtherance of this requirement, you are hereby directed by the Board of the Authority to suspend all the processes leading to engage Rock City Hotel as the Strategic Investor in the matter of the sale of the above hotels.’’ The NPRA added that, ‘’Further directives shall be issued to you on the subject matter as soon as we conclude our engagements and the evaluation of the relevant facts associated with the subject matter.’’
It is surprising that the NPRA has not issued any further directives, but rather the Minister for Pensions has come out to speak on behalf of the NPRA that the controversial sale must go ahead.
Breaking his long silence on the deal, Mr. Kofi Bosompem Osafo-Maafo admitted that negotiations have stalled because, ‘’there are major challenges regarding the payment terms of the deal.’’
It is interesting to note that the Rock City has issued a notice of withdrawal to SSNIT stating among others that, ‘’flowing from the commentary monitored and the undue negativity that has attended the commentary, we feel you have not done enough to engage all your stakeholders, leading to perceptions that we don’t want associated with our brand. We believe that such negativity is not only injurious to our brand but also jeopardizes the success of the investment we intend to make in these hotels. Therefore, we are writing to inform you of our decision to withdraw our bid and discontinue our pursuit of this investment opportunity.’’
The CEGA believes that, for the sake of good governance, the management of SSNIT should come out to cancel it outright. Following from this, the SSNIT Board of Trustees cannot be trusted anymore with the future of SSNIT and should find their way out. In addition, the NPRA Board should also resign for failing to give the necessary investment guidelines to SSNIT. There must also be a reorganization of the Boards to see more representatives for Labour.
Prof. Ohene Adjei
Executive Director – 0208124706
Mr. George Yankah
Communications Director – 0242161111