The National Pensions Regulatory Authority (NPRA) has ordered the Social Security and National Insurance Trust (SSNIT) to suspend its plans to sell majority stakes in five underperforming hotels to Rock City Hotel Limited.
This development comes amidst concerns over the financial viability of the properties and their impact on pension funds.
NPRA Chief Executive Officer John Kwaning Mbroh issued the directive following a board meeting on June 25, 2024. The affected properties include La Palm Royal Beach Hotel, Elmina Beach Resort, Busua Beach Resort, Ridge Royal Hotel and Trust Lodge.
In a statement to SSNIT, the CEO cited Section 67(2) of the National Pensions Act, stating: “You are hereby directed by the board of the Authority to suspend all processes seeking to engage Rock city Hotel Limited as the strategic investor in the matter of the sale of the above-mentioned hotels”.
The NPRA’s intervention follows SSNIT’s submission of documents on June 7, 2024, outlining its intention to engage Rock City Hotel Limited as a strategic investor. The regulatory body is now evaluating these documents and consulting with the Minister for Pensions and other stakeholders before issuing further directives.
This move by the NPRA comes just a week after a large-scale public demonstration dubbed “Hands Off Our Hotels” took place at the Labadi Beach Hotel. Hundreds of protestors gathered to voice their opposition to the proposed sale of a 60 percent stake in four prominent hotels: Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, and Busua Beach Resort.
Adding to the controversy, reports suggest that Rock City Hotel Limited is owned by Bryan Acheampong, the current Minister for Food and Agriculture. This connection has raised questions about potential conflicts of interest and the transparency of the proposed deal.
The financial strain on these properties raises questions about the potential impact on pension funds and the rationale behind SSNIT’s investment strategy. Critics argue that the continued ownership of underperforming assets may be detrimental to the overall health of the pension fund.
Mr. Mbroh concluded by stressing NPRA’s mandate under the National Pensions Act: “We are committed to regulating and monitoring the implementation of the Basic National Social Security Scheme to protect the interests of all stakeholders”.
