The Management of the Social Security and National Insurance Trust (SSNIT) has responded to comments by Mr Samuel Okudjeto Ablakwa, National Democratic Congress (NDC) Member of Parliament (MP) for North Tongu, on the sale of its hotels.
SSNIT in a statement copied to the Ghana News Agency said the attention of its Management had been drawn to a discussion on an Accra-based TV station that partly covered SSNIT’s strategic decision to divest 60 per cent of its stake in the six hotels in its investment portfolio.
The statement said the Trust sought to partner a strategic investor to raise capital to invest in the hotels and assist in their management.
It said the primary objective of finding a strategic investor was to increase efficiency, profitability, shareholder value, and the long-term sustainability of the SSNIT Pension Scheme.
It noted that accordingly, SSNIT went through International Competitive Tendering (ICT) processes as prescribed by the Public Procurement Act, 2003 (ACT 663), as amended by ACT 914, for the selection of a strategic investor.
It said the Trust commenced the process with the engagement of a Transaction Advisor through the ICT method of procurement, with publication of advertisements in National Dailies on 14th November 2018, and 15th November 2018.
“As of January 16th, 2019, deadline, 15 firms had expressed interest in submitting bids. Of these, six were shortlisted and issued with Request for Proposal (RFP) documents,” it stated.
“Approval was sought from the Central Tender Review Committee (CTRC) for the selection of a Transaction Advisor on 12th December 2019 and that was granted on 24th December 2019.”
The statement said following the selection of the independent Transaction Advisor to guide the selection of a Strategic investor amongst others, 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.
It said the advertisement was also published in The Economist Magazine on 26th February 2022.
The statement said a total of nine companies responded to the advertisements by submitting proposals on the 23rd of March 2022, the deadline.
It said six out of the nine were then shortlisted and issued with Request for Proposal (RFP) documents.
It reiterated that the qualifying firms were invited for the opening of their financial proposals; based on the technical and financial evaluation, the Rock City Hotel emerged the best.
It said based on the criteria set out in the RFP, Rock City Hotel submitted the best and strongest technical and financial proposal amongst those received.
The statement noted that consequently, it was in negotiation with SSNIT to buy a 60 per cent stake in each of the four hotels (Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel and Elmina Beach Resort).
It said bids for Busua Beach Resort and the Trust Lodge were considered to be unsuccessful, so they were no longer part of the hotels covered in this process.
It said the process of getting a strategic investor is in its final stages and therefore not yet concluded.
The statement said it was mentioned on TV discussion that the Commission on Human Rights and Administrative Justice (CHRAJ) had been petitioned to conduct a full-scale investigation into the sale of SSNIT hotels.
It said given the impending investigation by CHRAJ, Management of SSNIT would not comment further; adding that SSNIT would cooperate fully with CHRAJ throughout its investigation process.
“SSNIT further wishes to assure pensioners, contributors and the public of its commitment to managing the affairs of the Trust prudently for the sustainability of the Pension Scheme,” the statement said.
