Organised Labour will convene an emergency meeting today to determine its next steps following the National Pensions Regulatory Commission (NPRA)’s approval for the sale of SSNIT shares in six hotels.
On June 28, the NPRA directed SSNIT to pause negotiations with Rock City regarding the sale of four hotels, pending further evaluation and engagement. However, Pensions Minister Ignatius Baffour Awuah informed Parliament on Thursday, July 11, that all necessary procedures have been followed.
“Yes, it is true that NPRA issued a directive, but I would appreciate it if my colleague read the directive carefully. It requested all information related to the sale of the hotels, which SSNIT has provided. The directive wasn’t an outright prohibition but stated that SSNIT could proceed once NPRA, the regulator, reviewed and approved all documentation and processes,” Awuah explained. “As a minister, I can confirm that NPRA has reviewed the processes and has given SSNIT the go-ahead.”
He also provided reasons for selling SSNIT’s 60 percent shares in the hotels. “SSNIT considered selling its shares in the hotel investment portfolio as a strategic decision after multiple restructuring attempts proved insufficient. Selling 60-70% of its shares is seen as the most viable solution to prevent further resource depletion and to bring in private participation.”
Addressing concerns about the financial viability of the investments, Awuah stated, “Some investments are yielding low returns or making losses. Even for those generating profits, the returns are low. So, it is a strategic move to improve the overall performance of SSNIT’s investment portfolio.”