Director General for the Social Security and National Insurance Trust (SSNIT), Kofi Bosompem Osafo Maafo has revealed that all the hotels earmarked for sale in the SSNIT controversy have consistently operated at a loss and failed to generate dividends.
Speaking at a press briefing on Monday, July 8, Mr. Osafo Maafo defended its decision to sell a 60% stake in its hotels to Rock City Hotel which is owned by Minister for Food and Agriculture and MP for Abetifi Constituency, Bryan Acheampong.
According to Mr. Osafo Maafo, the capital-intensive nature of these businesses necessitates continuous financial investment, which SSNIT cannot sustain alone.
He explained, “The ongoing losses and lack of adequate returns on investment compelled us to seek a strategic investor to revitalize the hotels.” He further clarified that previous attempts to improve profitability, including engaging external management, had proven unsuccessful.
Regarding accusations of unfair bidding practices, Mr. Maafo refuted claims made by Freddy Blay, former NPP National Chairman, stating that Spartan Ives’ bid for the stake did not progress beyond the initial bidding stage due to non-compliance with bid requirements.
Despite the controversy, SSNIT maintains that the decision to sell remains financially prudent and in compliance with procurement laws.
The Trust has temporarily suspended negotiations in response to a directive from the National Pensions Regulatory Authority, pending further review of the sale process.
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Source: Comfort Sweety Hayford/ATLFMNEWS
