Pension Authority Endorses Sale of SSNIT 4 Hotels – Minister Tells Parliament

The Minister of Employment and Labour Relations, Ignatius Baffour Awuah, has announced that the National Pensions Regulatory Authority (NPRA) has approved the sale of 60% of SSNIT’s shares in its hotel investment portfolio.

This follows a directive from the NPRA on June 28, ordering SSNIT to suspend its negotiations with Rock City over the sale of four hotels, pending further evaluation and engagement.

The Minister revealed this while answering questions posed by Samuel Okudzeto Ablakwa, MP for North Tongu, on the floor of Parliament on Thursday, July 11, 2024.

Mr. Awuah confirmed that NPRA has given the go-ahead for the hotels to be sold after the Authority was satisfied that SSNIT had complied with all due processes.

He clarified that the NPRA’s directive was intended to ensure that SSNIT had followed all necessary procedures and documentation, not to completely prevent the sale.

“Yes, it is true that NPRA issued a directive, but it was to ensure that they were provided with all information relating to the sale of the hotels, which SSNIT has since done. So, it wasn’t a direct order to stop SSNIT from proceeding, but rather to ensure NPRA, as the regulator, was satisfied with the documentation and processes before giving the go-ahead. As a minister, I can confirm that NPRA has now indicated that SSNIT can proceed with the sale,” Mr. Awuah stated.

He further explained the rationale behind the sale of SSNIT’s 60 percent shares in the hotels. According to Mr. Awuah, the decision was strategic, following multiple unsuccessful attempts at restructuring.

“SSNIT considered the sale of shares in its hotel investment portfolio as a strategic decision. Selling 60-70% of its shares is seen as the most viable solution to prevent further resource depletion and to attract private participation,” he said.

Mr. Awuah also addressed concerns about the profitability of the investments. “Is it a good business activity? Yes, I believe so. Some of the investments are either generating low returns or incurring losses. Even those making profits are delivering lower returns. Therefore, the sale is intended to address these issues and optimize SSNIT’s investment portfolio.”