SSNIT denies wrongdoing in 60% hotel stake sale to Agric Minister’s company

The Social Security and National Insurance Trust (SSNIT) has denied any foul play in its decision to sell a 60% stake in its hotels to Rock City Hotel owned by the Food and Agriculture Minister, Dr Bryan Acheampong.

This comes after North Tongu MP, Samuel Okudzeto Ablakwa, lodged a formal petition with the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate allegations surrounding the sale of six hotels.

The hotels under scrutiny in the petition include Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort, and the Trust Lodge Hotel.

Mr Ablakwa’s petition to CHRAJ seeks an investigation into various allegations, including conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft.

Mr Ablakwa in his petition highlights what he views as a violation of constitutional provisions, citing Articles 78(3) and 98(2) of the 1992 Constitution.

In a subsequent Facebook post on Friday, May 17, he contended that Dr Bryan Acheampong’s alleged involvement in the hotel sale without the Speaker of Parliament’s permission constitutes a breach of parliamentary protocol regarding holding offices of profit.

“In my petition, I am inviting CHRAJ to investigate grave matters bothering on conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft.”

“I have also drawn attention to blatant violations of Article 78(3) and 98(2) of the 1992 Constitution as diligent checks from Parliament’s Committee on Office of Profit reveal that Hon. Bryan Acheampong has not applied and does not have the permission of the Speaker of Parliament to hold an office of profit,” he said.

However, according to SSNIT, the strategy to partner with an investor to raise capital to invest in their hotels, and also assist in their management, started as far back as 2018 through International Competitive Tendering (ICT) processes as prescribed by the Public Procurement Act.

In a press release, the Trust stated that the process started in November 2018 after it had employed a Transaction Advisor, to guide the selection of a Strategic investor amongst others.

It noted that following this “further advertisements for an Expression of Interest (EOI) for a Strategic Partner for the SSNIT Hotels were placed in the Daily Graphic on 3rd February 2022 and in the Ghanaian Times on 7th February 2022. The advertisement was also published in The Economist Magazine on 26th February 2022.”

SSNIT stated that six of the nine companies that responded to the advertisements were then shortlisted and issued with Request for Proposal documents.

“The qualifying firms were invited for the opening of their financial proposals. Based on the technical and financial evaluation, the Rock City Hotel emerged as the best. Based on the criteria set out in the RFP, Rock City Hotel submitted the best and strongest technical and financial proposal amongst those received.”

“Consequently, it is in negotiation with SSNIT to buy a 60% stake in each of the four hotels (Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel and Elmina Beach Resort),” SSNIT stated.

They indicated that bids for Busua Beach Resort and the Trust Lodge were considered to be unsuccessful hence they are no longer part of the hotels covered in this process.

The Trust insisted that the process is yet to be completed.

SSNIT said it will not comment on the case until the impending investigation with CHRAJ has been completed. “SSNIT will cooperate fully with CHRAJ throughout its investigation process.”