President of IMANI Africa, Franklin Cudjoe, has commended the Social Security and National Insurance Trust (SSNIT) for its decision to divest its stake in six hotels, calling it a prudent move.
Mr Cudjoe praised SSNIT’s strategy to involve the private sector in co-investing in the hotels, which are currently fully owned by the trust but have been facing operational challenges.
He argued that this approach would lead to a more efficient allocation of resources, benefiting both SSNIT and the broader economy.
According to Mr Cudjoe, divesting from these hotels would not only provide liquidity for SSNIT’s operations but also reduce political interference in the management of these assets.
In a recent Facebook post on Tuesday, May 21, Mr Cudjoe reiterated his support for the initiative, emphasizing that the negotiated sale price for the four hotels is fair and reasonable.
“I think it is sensible for a state behemoth such as SSNIT, eternally abused by past and present politicians, to scale down its real estate business, which has never been profitable.”
“Similarly, SSNIT should seek private sector participation (co-investment) in wholly-owned hotels which are all not runnig efficiently. Not only will that free up some liquidity, but it will also amputate the long arm of the politicians, which tend to reach into the brick and mortar businesses over which SSNIT has control. That said, I will support any competitive divestiture that brings on board more money, technology, skills and preserves Ghanaian management.”
“I think the investment plan proposed and the price agreed for the 4 hotels is fair,” he stated.
Franklin Cudjoe’s comments come in response to a formal petition filed by North Tongu MP Samuel Okudzeto Ablakwa with the Commission on Human Rights and Administrative Justice (CHRAJ), requesting an investigation into the sale of six hotels.
The hotels listed in the petition are Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort, and the Trust Lodge Hotel.
However, SSNIT clarified that only four hotels, not six, have had successful bids, contrary to the MP’s claims.
Mr Ablakwa’s petition demands an investigation into various allegations, including conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and corruption.
In his petition, Mr Ablakwa points out what he considers violations of constitutional provisions, specifically Articles 78(3) and 98(2) of the 1992 Constitution, arguing that these actions represent significant breaches of legal and ethical standards.
Additionally, in a Facebook post on Friday, May 17, Mr Ablakwa claimed that 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.
Mr Ablakwa asserts that this is a serious violation that warrants thorough investigation and accountability.
“In my petition, I am inviting CHRAJ to investigate grave matters bordering 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.