The Social Security and National Insurance Trust (SSNIT) has defended its decision to sell a 60 percent stake in four of its hotels, citing significant investments and lack of returns. According to SSNIT, it has invested over GHC230 million to revive the struggling hotels, but unfortunately, all four have failed to generate any significant returns.
Director-General of SSNIT, Kofi Osafo-Maafo, addressed a news conference in Accra on July 8 to explain the rationale behind the decision. Osafo-Maafo stated that despite the significant investments, the hotels have consistently underperformed, leading to a significant drain on SSNIT’s resources.
He emphasized that the decision to sell the stake was not taken lightly, but was necessary to protect the interests of contributors and ensure the sustainability of the Trust. The four hotels in question are the Labadi Beach Hotel, the Accra Beach Hotel, the Elmina Beach Resort, and the Kumasi City Hotel.
SSNIT acquired the hotels as part of its investment strategy to generate returns for the Trust, but unfortunately, they have not performed as expected. Osafo-Maafo assured that the sale of the stake will not affect the operations of the hotels, and that staff will continue to work as usual.
He also emphasized that the sale is part of a larger strategy to refocus SSNIT’s investments on more profitable ventures. The Director-General expressed confidence that the sale will ultimately benefit the Trust and its contributors, and ensure the long-term sustainability of SSNIT.
