SSNIT negotiations with Rock City stalls

The Social Security and National Insurance Trust (SSNIT) negotiations with the Rock City over the sale of 60 per cent stake in Labadi Beach Hotel and three others has stalled.

This is because payment terms have not been agreed.

SSNIT will continue to engage stakeholders and where there is no way forward as what the Trust wants, the sale will be put on hold.

The other three are Ridge Royal Hotel, Elmina Beach Resort and the La Palm Royal Beach Hotel.

The Director-General of the Trust, Yaw Osafo Maafo, announced this during a media encounter on Saturday and explained that the negotiations have stalled because there are major challenges regarding the payment terms on the deal.

“We want the best for the Trust and therefore we will ensure that whatever is agreed is in the best interest of the pension contributors”, he assured.

Answering a question from Graphic Business as to whether Rock City has the financial wherewithal to acquire the stake on offer, he replied in the positive but was quick to add that “until we see the money and the payment plan according to our terms, which will be in the best interest of the Trust and contributors, there will be no deal”.

Meanwhile, he said SSNIT will continue to engage stakeholders on the matter and where there is no way forward as what the Trust wants, the sale will be put on hold.

The sale of 60 per cent stake in the four hotels of SSNIT has generated a debate and public uproar after Member of Parliament for North Tongu, Okudzeto Ablakwa, raised issues about the sale and filed a petition with CHRAJ accordingly.

He raised various issues including the fact, the deal amounted to a “state capture” and must not be allowed considering the fact the owner was a sitting Minister of State, and that Rock City has no capacity to take over what he described as lucrative hotels built with the contributions of workers.

The allegations have however, been debunked by the SSNIT Director-General who maintained that due process regarding the process was duly followed to arrive at the stage the negotiations are so far.

He provided some evidence of the process to the media and answered all questions floated regarding the deal.

Meanwhile, the industry regulator, National Pensions Regulatory Authority’s (NPRA) has directed SSNIT to suspend ongoing negotiations with Rock City over the sale of four hotels.

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