Palgrave Boakye-Danquah, government spokesperson for Governance and Security, has mounted a robust defence of the Social Security and National Insurance Trust (SSNIT)’s decision to divest its 60% interest in four hotels to Rock City Hotel.
He argued that the move is a prudent business decision aimed at optimising returns on investment and enhancing the trust’s financial sustainability
Byran Acheampong, owner of Rock City Hotel and Minister of Agriculture, has come under heavy criticism over his attempt to purchase the SSNIT hotels.
The Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa on Tuesday, June 18, led protesters to demand that the government halt the sale of 60 per cent shares in four hotels owned by SSNIT to Rock City Hotel.
In an interview in Accra, Mr Boakye-Danquah said the four hotels in question have been consistently unprofitable for several years, and commended SSNIT for its prudent decision to divest its stake in the hotels.
He believes the sale of the hotels will prevent further financial losses and potentially salvage the assets from financial ruin.
He dismissed assertions of state capture by Rock City Hotel, labelling such claims as unfounded and misinformed, emphasising that the transaction is a straightforward business decision aimed at optimising SSNIT’s investments, rather than a covert attempt to unduly favour Rock City Hotel.
“Over the past 14 years, SSNIT has had investments in hotels…La Palm, Elmina Beach Resort, Busia Beach Resort, Labadi Beach Hotel, Ridge Royal, Trust Lodge and these hotels have been running at consistent losses over the past 14 years.
“I’m minded not to politicise it, if I dare politicise it, then I might be reminded who was in office at the time when these hotels were running at losses. I know it’s the erstwhile NDC government that has put a lot of these into issue. Consistent losses, the management was constantly requesting funding.
“There were capital injections SSNIT needed to make, there was a high expenditure. SSNIT hadn’t really viewed all of these, and realised that there’s a need for a strategic partner…SSNIT is always making sure that there’s value proposition in whatever they do… There’s nothing in the conversation that says there’s a state capture… I know very well that SSNIT has made one of the best decisions in the interest of the pensioners. When this whole thing goes through the pensioners will be proud. The processes are clean, fair and transparent, it’s open for everybody.”
He drew parallels with the past, pointing out that the PNDC government had previously sold off several hotels, and questioned the rationale behind the “Hands off Our Hotels” demonstration, labelling it as “needless”.
