Ghana’s Social Security and National Insurance Trust (SSNIT) is facing a roadblock in its plan to sell a majority stake in six hotels.
Negotiations with the preferred bidder, Rock City, have stalled due to disagreements over payment terms.
SSNIT seeks a single upfront payment, while the agreement allows for negotiation on payment structure. This flexibility, intended to smooth the sale, has become a sticking point.
The divestiture aims to address the hotels’ poor financial performance. Only one hotel out of six has paid dividends in recent years.
SSNIT argues that even profitable hotels are underperforming compared to other potential investments.
Adding complexity, the National Pensions Regulatory Authority (NPRA) recently directed SSNIT to halt talks with Rock City, citing guidelines SSNIT claims it hasn’t received.
The NPRA is also looking into the ministerial connection to Rock City’s ownership.
Despite these setbacks, SSNIT is committed to finding a solution. They emphasize transparency in the process but acknowledge the need for better stakeholder engagement.
The outcome of this saga will impact SSNIT’s investment strategy and Ghana’s hospitality sector. SSNIT must balance its duty to pensioners with stakeholder concerns and ensure transparency while maximizing returns.
The situation highlights the complexities of public asset management, regulation, and stakeholder interests in Ghana.
