By Doreen Ampofo
The Social Security and National Insurance Trust (SSNIT), has denied any foul play in its decision to sell a 60 percent stake in its hotels to Rock City Hotel Limited, owned by the Food and Agriculture Minister, Dr Bryan Acheampong.
This comes after the Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, lodged a formal petition with the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate allegations surrounding the sale of six hotels.
In a statement, SNNIT said an international competitive tendering process was followed, leading to the selection of Rock City Hotel, which it said submitted the best and strongest technical and financial proposal amongst nine companies which responded to SSNIT’s call for a strategic partner.
The hotels under scrutiny in the petition include Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort, and the Trust Lodge Hotel.
Mr Ablakwa’s petition to CHRAJ seeks an investigation into allegations of conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft. Mr Ablakwa in his petition, highlights what he views as a violation of constitutional provisions, citing Articles 78(3) and 98(2) of the 1992 Constitution.
SSNIT, in response, said the primary objective of finding a strategic investor is to increase efficiency, profitability, shareholder value, and the long-term sustainability of the SSNIT Pension Scheme. Accordingly, SSNIT went through International Competitive Tendering (ICT) processes as prescribed by the Public Procurement Act, 2003 (ACT 663), as amended by ACT 914, for the selection of a strategic investor. SSNIT said it commenced the process with the engagement of a Transaction Advisor through the ICT method of procurement, with publication of advertisements in the Daily Graphic on 14th November, 2018 and in the Ghanaian Times on 15th November, 2018.
The advertisement was also published in an international magazine, The Economist in its January 5-11, 2019 edition.
SSNIT indicated that as of the January 16th, 2019 deadline, fifteen (15) firms had expressed interest in submitting bids. Of these, six (6) were shortlisted and issued with Request for Proposal (RFP) documents.
It added that approval was sought from the Central Tender Review Committee (CTRC) for the selection of a Transaction Advisor on 12th December, 2019 and that was granted on 24th December, 2019. It said further advertisements for an Expression of Interest (EOI) for a Strategic Partner for the SSNIT Hotels were placed in the Daily Graphic on 3rd February, 2022, and in the Ghanaian Times on 7th February, 2022.
The advertisement was also published in The Economist Magazine on 26th February, 2022. A total of nine (9) companies responded to the advertisements by submitting proposals on the 23rd March, 2022 deadline. Six (6) out of the nine (9) were then shortlisted and issued with Request for Proposal (RFP) documents. SSNIT said the qualifying firms were invited for the opening of their financial proposals. Based on the technical and financial evaluation, the Rock City Hotel emerged as the best.
It said based on the criteria set out in the RFP, Rock City Hotel submitted the best and strongest technical and financial proposal amongst those received. Consequently, it is in negotiation with SSNIT to buy a 60% stake in each of the four (4) hotels; Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel and Elmina Beach Resort. It said bids for Busua Beach Resort and the Trust Lodge were considered unsuccessful, so they are no longer part of the hotels covered in this process.
It clarified that the process of getting a strategic investor is in its final stages and therefore not yet concluded.
It concludes that, given the impending investigation by CHRAJ, Management of SSNIT will not comment further and will cooperate fully with CHRAJ throughout its investigation process.