Allegation against SSNIT mgt: Sophia Akuffo as a lawyer should be in the position to adduce evidence – Bokpin

A professor at the University of Ghana Business School, Godfred Bokpin has said that the former Chief Justice Sophia Akuffo should be in a position to provide evidence to support her allegation that the management of Social Security and National Insurance Trust (SSNIT) deliberately ran down the hotels it intended to sell to just to ‘distribute’ among themselves.

Prof Bokpin explained that available data in the Fourth Republic suggest how state institutions have been badly managed, leading to mistrust between the citizens and the managers of the institutions.

“I think that probably as far as the availability of data is concerned and especially under the 4th Republic, the way we have managed state institutions undermines public confidence in our state institutions, it is all over the place.

“I want to believe that the former Chief Justice, being a lawyer, certainly will be able to provide evidence to that extent but if you look at the financials of SSNIT and the number of state institutions, not to even talk about Bank of Ghana in the last three years or so, really it doesn’t consolidate confidence in our state institutions and therefore you see the mistrust between citizens, the public and then state institutions,” he said on the Big Issue on TV3 Tuesday July 30.

His comments come after the Management of SSNIT vehemently rejected the allegation made by Sophia Akuffo. SSNIT said that she made an unsubstantiated allegation regarding the botched sale of the hotels.

Madam Sophia Akuffo had accused the manager of SSNIT of deliberately running down the hotels just to see among themselves.

Sophia Akuffo made this claim in an exclusive interview with TV3’s Alfred Ocansey on Thursday, July 25.

“Of course, SSNIT will justify it because they have run down the hotels and just like in the public sector a lot of public properties have been run down just so that the value will be run down and always at the end of some cycle or the other they do sweet heart deals and do this distribution among themselves,” she said.

However, SSNIT in a statement issued on July 29 reacting to the comment by Sophia Akuffo said the allegations by the former Chief Justice are “false and undermines the integrity and confidence in the Pension Scheme.”

In contrast to the former Chief Justice’s claim, SSNIT said it restructured the ownership of the hotels, brought in private hotel management companies, made changes in management and the Board where necessary, provided financial support, including the funding of maintenance and capital expenditure to make the hotels more competitive.

SSNIT proceeded to reiterate its justification as to why it decided to sell its shares which has now been terminated.

“As we have previously noted, although we have seen some improvement in the performance of the hotels, this has been far below what we require to finance growth and capital expenditure. Returns had been low or negative, and most of them had been making persistent losses and not paying dividends. Hence, the steps to bring in a strategic investor, which we have now terminated,” SSNIT stated.

“We wish to emphasise thatthe allegations of deliberate mismanagement of SSNIT hotels are false and undermines the integrity and confidence in the Pension Scheme. Allegations of this nature, without substantiated evidence, create unnecessary tension among stakeholders and potentially detract the public from the constructive dialogue needed to address genuine issues,” SSNIT added.

SSNIT assured pensioners, contributors and the public of its commitment to managing the assets of the Trust in a manner that will ensure the long-term sustainability of the Scheme.

It could be recalled that SSNIT on Friday, July 12 announced to the public the termination of the controversial sale of the shares in the hotels after several opposition from various stakeholders.

“The Board and management of Social Security and National Insurance Trust (SSNIT)  wish to inform the public that the process to divest 60% of SSNIT’s stake in the hotels has been terminated,” Board Chair of SSNIT Elizabeth Akua Ohene said in the statement.

Background

SSNIT in its defence said the process to sell 60% of its shares in the hotels begun in 2018 and was in its final stage and that Rock City Hotel had met all requirement to purchase the 60% shares.

He further organised a demonstration to protest against the sale of SSNIT Hotels. Various labour unions also spoke against the move which further prompted the NPRA to direct SSNIT on June 28 to suspend its negotiations with Rock City over the sale of four hotels, pending further evaluation and engagement.

However, answering questions on the floor of Parliament on Thursday, July 11, Employment and Labour Relations Minister, Ignatius Baffour Awuah confirmed that NPRA has given the go ahead for the hotels to be sold after the Authority was satisfied that SSNIT has complied with all due processes.

He said the directive from the NPRA was only to ensure that SSNIT had complied with all the processes and documentation and not to completely prevent SSNIT from selling the hotels.

“Yes, so, as a minister, I can tell you tell you on authority that NPRA has since indicated that they have seen the processes, and they think that SSNIT can go ahead.”

The post Allegation against SSNIT mgt: Sophia Akuffo as a lawyer should be in the position to adduce evidence – Bokpin first appeared on 3News.

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