The Pensions Regulator orders SSNIT to suspend its hotel sales to Rock City

“In helping the Authority better understand the facts surrounding the sale and ongoing negotiations regarding the engagement of Rock City Hotels Limited as a Strategic Investor, you and your team appeared before the Authority’s Board of Directors at their meeting on Tuesday, June 25, 2024, to present further observations on this topic, although ambiguous. The Authority appreciates the efforts and commitment shown by you and your team to date to assist us in making the necessary arrangements in this matter, in accordance with our role under section 7(g) of the National Pensions Act 2008 (Act 766), which requires us to “regulate and monitor the implementation of the Basic National Social Security Scheme (BNSSS)” we read in the letter.

The Authority stressed that this decision was consistent with its mandate to oversee and guide the Trust’s investment decisions, in accordance with the State Pensions Act 2008 (Act No. 766).

The letter dated June 28, 2024 highlighted that NPRA requested additional information from SSNIT at its meeting on June 25, 2024. Discussions were extensive but inconclusive. NPRA appreciated the efforts of Osafo-Maafo and his team in assisting in the evaluation of the proposed sale.

In addition, the NPRA relied on section 67(2) of the Act, which requires the Authority to issue guidelines on investment decisions, which justifies the suspension of negotiations with Rock City Hotel Limited.

“As you probably know, Art. 67 section 2 of the Act obliges us to issue appropriate guidelines that will guide your investment decisions. In order to meet this requirement, the Management Board hereby instructs you to suspend all processes aimed at engaging Rock City Hotel Limited as a Strategic Investor for the sale of the above-mentioned hotels.” added in NPRA list.

Samuel Okudzeto Ablakwa, MP for North Tongu, celebrated the directive as a triumph on social media. He described it as “significant initial victory” in the fight against what he called “state capture” calling for continued vigilance and resistance.

Ablakwa has been vocal about alleged state capture, particularly criticizing the involvement of government officials in the privatization of state assets. He organized a demonstration called “Hands off our hotels” in Accra to oppose the sale of shares in the SSNIT hotel chain.

The event marks a critical juncture in the ongoing scrutiny of government transactions with state assets, reflecting broader public sentiment and demands for transparency and accountability in such transactions.