Demonstration Over Sale of SSNIT “Non-performing Hotels” in the Right Direction

Times and situations change for good or bad. But some believe the circumstances of the sudden removal of Dr John Ofori-Tinkorang, former Director General with three months to end his term with SSNIT, and hurried replacement with Kofi Bosompem Osafo-Maafo may have sparked up a volcanic action which culminated in the Hon Sam Okudzeto led demonstration against the attempted nontransparent offloading of 60% interest in six supposedly non-performing assets.

On the D day, the Dampare boys in charge of the demonstration took positions along the root very early before demonstrators started arriving; some on foot and others in all manner of vehicles ready for action.

At the starting point, close to the entrance of the Labadi Beach Hotel, placards with strong messages crafted to take care of all aspects of the issues at stake were available for pickup.

Anxious men and women some with babies strapped at their backs, young and old, mostly clad in red and black colours, made their selection from hundreds of placards, depending on their interests and beliefs.

Participants arrived from all parts of Accra and beyond, because the issues involved centered on capture of State properties by government appointees.

Since the epicenter of the action was on the land of Labadi, beautiful expressions in the Ga language were featured prominently on placards.

Check this one, ” SHIKPONG TS3MEI K3 DAABI ”

The rest were in the English language; like ” LABADI SHOULD BUY ROCK CITY ” and ” OUR HOTELS ARE NOT YOUR AGYAPADE3 ”

The arrival of the Chief Priest of the La Traditional Council, Nuumo Yemi VII and entourage gave another dimension to the demo.
But why should the Chief Priest move out of his sacred base to join demonstrators to march to the seat of power to present a petition?

The systematic thievery and loot of their ancestral stool lands without due process and adequate compensation has irritated them for too long. And the Nuumo together with the La Royals used the occasion to present their case through libation pouring at points of departure and the point of petition presentation.

Very keen to know the mission of the Chief Priest at the demonstration, Yours truly meandered his way through the thick crowd, followed the entourage to the entrance of the Labadi Beach Hotel which had been blocked by neatly dressed police officers, unarmed but some with bodycams.

The officers on duty that day were smartly dressed, surnames professionally embossed on their uniforms with their shinning shoes to match. Mobile police crowd control equipment were visible but not intimidating.

It is yet to be known whether admissions to the police no more require the standard height. A lot of them appeared shortish and may not withstand a violent demo like the Kumi Preko demo of yesteryears.

Casting casual glance at them periodically, some of them, after watching them treck from the beach hotels to the Jubilee House vicinity was worrisome; very young ladies and gentlemen; perhaps new recruits just released from training depot; sweating and hobbling along under a fair weather was remarkable.

The duty of the La Chief Priest was simple; holding a bottle of schnapps; pouring of libation; ancestral role call; reciting dreadful incantations; periodically droping schnapps on the ground to invoke the spirits of the land and the sea; put their case across to the gods and requested answers, protection, support and successful demonstration.
Tswaa, Tswaa, Tswaa Omanye aba….
Yaoo…

As per the arrangements, the Chief Priest and entourage headed towards the La Palm Royal Beach Hotel with yours truly in hot pursuit because they walked very fast. At the entrance to the La Palm Royal Beach, the same long libation, powerful incantations etc were repeated without any police intervention.

My presence there reminded me of an intercepted La Palm Royal Beach Hotel official memo which fortunately popped out in the heat of the discussions of alleged impropriety in the sale of the supposedly “non-performing assets”.

But what was the memo about?

The memo was dated 25th March, 2024; from the office of the General Manager to the Financial Controller, requesting approval for the payment of $18,000 as acting allowance to the Chief Executive Officer (CEO), Nana Domtie Onwona – Kwakye for acting as General Manager for a period of six months. On the memo, the Financial Controller also passed it on, requesting the Accountant to process the memo for payment on 3rd April, 2024. It is not yet known if the amount involved has been released to the double title holder CEO.

This damming revelation was shocking for some reasons:
1. This 100% SSNIT owned La Palm Royal has been listed for divestment for running losses over a long period of time, but strangely it is capable of paying $18,000 as acting allowance for a period of only six months.
2. If this figure represents an acting allowance for six months, what would be the actual monthly salary of a General Manager at La Palm Royal Beach Hotel?
3. And how much will be the monthly salary for the Chief Executive Officer herself?4. Under what circumstances should a CEO of La Palm Royal come down to take up a vacant position of a General Manager, to run concurrently with her CEO position for six months?

Is it because of her alleged strong linkages to the Council of State top brass, or it is a normal hotel management policy?
5. In such a situation, how can the Hotel make profits?

It might be of great interest to know that in 2015, the SSNIT Management at the time, realised the weaknesses of the La Palm Royal Beach Hotel, Elmina Beach Hotel and Busua Beach Resort, but did not attempt to sell them.
Rather, the SSNIT management signed a management contract agreement with Legacy Hospitality Services Limited to manage the three facilities and turn them around.

And why Legacy Hospitality?

SSNIT management resorted to Legacy Hospitality Services once again because Labadi Beach Hotel had benefited greatly from a ten-year management contract with Legacy. If Labadi Beach Hotel continues to make huge profits till today, thanks to Legacy Hospitality.

It is significant to note that this management agreement with Legacy to turn the three facilities around to assume the status of Labadi Beach Hotel was sadly abrogated in 2017 after the change of government from H.E John Dramani Mahama to President Nana Addo Danquah Akufo-Addo.

A change in government in Ghana means “moko aya ne moko aba” that’s all, ignoring the consequences.

So, the three facilities went back to their old bad ways; and continued with their loses. If the three hotels were bundled together with the others to be sold, the picture looks like the continuation of a well laid plan to run down the hotels and offered for sale.

Observers believe that the answer to the non-performing hotels should not be the dilution of SSNIT interest, and especially at the current rate prescribed by the transaction advisor, and the paltry sum said to have been offered by Hon Bryan Acheampong.

Rather, since Labadi Beach Hotel, within the same vicinity, in fact a few meters apart, is able to record significant profits year after year, and reportedly has accumulated impressive reserves estimated at over $55 million sitting in five local banks, the Board of Trustees of SSNIT should not worry themselves over “dry rocks” but place the management of La Palm Royal Beach Resort under the management of Labadi Beach Hotel for just a few months and see the results.

Financial indiscipline and cronyism might be the cause of the huge losses recorded by some of the listed hotels. But the bankrupt state of the economy cannot be ruled out as another cause of the bad performance of the hotels, most of which were built for tourists’ occupation.
Tourism flourishes better under booming economies but not a World Bank assessed “D” class economy like what currently prevails in Ghana.

Back to the demo. The huge turnout, as well as peaceful and successful demonstration should serve a notice to the board and management of SSNIT about public dissatisfaction with their performance.
The SSNIT Board should quickly work to reverse the hostile and indecent aquisition of the Labadi Beach front by the incorrigible Blay brothers to further improve the fortunes of the Labadi Beach Hotel. The board knows the original dimensions of the hotel land and must act fast.

Workers, pensioners and Ghanaians at large are eagerly waiting for the outcome of the CHRAJ investigations and the way forward.

It is worthy to note that, unlike Governor Addison who barricaded himself at the Bank of Ghana and refused to meet demonstrators for a petition meant for him, but called us bad boys, this time, a Deputy Chief of Staff was assigned from the Jubilee House to meet the leaders of the demonstration to receive their petition. This is a sign of respect Governor Addison must emulate next time.

It is hoped President Akufo-Addo will also take necessary steps to work on the petition submitted by Hon Okudzeto Ablakwa to ensure the cessation of sale of state properties to appointees for a song.

By George Yankah

21st June, 2024