Sale of SSNIT Hotel shares gets green light after NPRA review
Ghana's National Pensions Regulatory Authority (NPRA) has approved the sale of 60 percent of the Social Security and National Insurance Trust's (SSNIT) shares in its hotel portfolio, according to Employment and Labour Relations Minister, Ignatius Baffour Awuah.
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This follows a temporary halt to negotiations with potential buyer Rock City on June 28, 2024.
The NPRA requested further information from SSNIT to ensure all due processes were followed.
Read also: NPRA directs SSNIT to suspend processes seeking to engage Rock City as strategic investor until...
Speaking in Parliament on Thursday (July 11, 2024), Mr. Awuah clarified the NPRA's directive.
"Yes, it is true that NPRA came up with a directive, but I would appreciate it if my brother, my colleague, really read the directive from NPRA.
It said it needed to be furnished with all information relating to the sale of the hotels, which SSNIT has since done that," he said.
“So, it wasn’t like a direct something that SSNIT should not go ahead to do anything, but then, SSNIT can only go ahead when NPRA, which is the regulator within the field, had actually certified that they have seen all the documentation and the processes, and they think that we are good to go."
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“Yes, so, as a minister, I can tell you on authority that NPRA has since indicated that they have seen the processes, and they think that SSNIT can go ahead.”
The Minister also addressed the rationale behind the sale saying: “SSNIT considered only the sale of shares for its hotel investment portfolio as a strategic decision after multiple attempts at restructuring proved insufficient.
“70-60 percent of its shares are deemed the most viable solution to prevent further depletion of resources and to bring in private participation.”
“Is it a good business activity? Yes, I want to believe my colleague is listening to me fully, well because I answered by saying that some of the investments are either making low returns or making losses.
“So it is not in all cases that we are making losses, but even for those that are making profits, the returns are low.”
The sale is expected to improve the long-term health of SSNIT's investment portfolio and potentially lead to a revitalization of the hotels under new management.
