SSNIT Halts Sale of Hotel Stakes Following Stakeholder Objections

The Director-General of the Social Security and National Insurance Trust (SSNIT), Kofi Bosompem Osafo-Maafo, has announced that the trust has decided to cancel the sale of 60 percent of its stake in four hotels after considering objections from various stakeholders.

In a recent radio interview on Accra-based Citi FM, Mr. Osafo-Maafo explained that the board initiated the sale process and thus, it was appropriate for the board to issue the termination notice. The termination notice was signed last Friday by the Board Chairperson.

This decision comes in response to Organized Labour’s declaration of an indefinite nationwide strike starting from Monday, July 15, protesting the proposed sale of 60 percent shares in Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, and Ridge Royal Hotel.

SSNIT had originally initiated the process to invite private investment back in 2010, with the current board actively pursuing it since 2017. The tender process for strategic investors followed in 2018. However, in a statement released on Friday night (July 12), SSNIT announced the termination of the divestment process, emphasizing their commitment to managing the Trust’s affairs prudently to ensure the sustainability of the Pension Scheme.

Mr. Osafo-Maafo reiterated in his interview that SSNIT’s decision was influenced by the persistent objections from stakeholders and unions, stating, “The main reason that SSNIT terminated the process [is that] we listened to the objections from the stakeholders and we decided to terminate the process. We have been engaging them ever since this issue became public.”