The Director-General of the Social Security and National Insurance Trust (SSNIT), Kofi Bosompem Osafo-Maafo, has revealed that the decision to terminate the sale of a 60% stake in four hotels owned by SSNIT to Rock City Hotel was influenced by Organised Labour’s objections. Osafo-Maafo explained that the transaction’s broader engagement with relevant stakeholders was a crucial factor in the decision-making process.
He emphasized that management listened to the diverse objections against the deal and decided to abrogate the process, stating, “We listened to the objections from the stakeholders and we decided to terminate the process.” Osafo-Maafo highlighted that SSNIT had engaged with various stakeholders, including the unions, Labour and Employment Minister, and NPRA, to ensure that all parties were on the same page.
He noted that the objective of improving the hotels’ revenue was a shared goal among all stakeholders, saying, “My team and I met with the unions and the Labour and Employment Minister, and we had two engagements with the NPRA, so there has been continuous engagement.”
Osafo-Maafo clarified that the process of divesting SSNIT’s shares in the hotels did not start under his tenure, but rather as far back as 2010. He explained that the board had invited investors in 2010, and subsequently in 2017 and 2018, the board directed that strategic investors be found, with the process continuing until 2022.
Osafo-Maafo emphasized that SSNIT did not delay in addressing the issue, as the process had been ongoing for several years. He assured that the decision to terminate the sale was made after careful consideration of all stakeholders’ concerns. The termination of the sale is seen as a victory for Organised Labour, which had vociferously objected to the deal.
