Nine years into a $5.4m failed SSNIT land purchase saga

As the dust settles on a scandal that has rocked the Social Security and National Insurance Trust (SSNIT) for nearly a decade, the glaring absence of accountability for the officials involved in the $5.45 million land deal has left many Ghanaians questioning the integrity of the institution meant to safeguard their retirement savings.

Despite the monumental financial blunder that has plagued SSNIT, those responsible have evaded consequences, allowing a culture of impunity to thrive. While a low-level employee at the Hohoe office faced swift dismissal for a mere GH¢250.00 misappropriation, the architects of this disastrous land deal remain unscathed, raising serious concerns about the ethical standards and governance practices within public institutions.

This failure to punish the officials behind the deal underscores a troubling narrative: one where accountability is selectively applied, fostering an environment where high-ranking individuals feel insulated from repercussions, regardless of the magnitude of their misdeeds.

The failed land purchase

The SSNIT land saga began in January 2016 when the Trust purchased a 1.52-acre plot adjacent to its Guest House in Accra, through Premier Portfolio Limited (PPL). The land belonging to real estate developer Ernest Nunoo, who had rightful ownership since 2004 from the Osu Traditional Council, was finally plotted for him after years of legal battle with the Lands Commission (LC). After extensive investigations revealed the truth, SSNIT found itself embroiled in a protracted legal battle with PPL, attempting to reclaim funds spent on the property it did not legally own.

This case has not only wasted public funds but has also cost the pension fund an estimated GH¢115 million in potential returns. Figures from SSNIT indicated that had the money been wisely invested in 364-day treasury bills, it could have accumulated significantly by now, benefiting the very workers whose contributions SSNIT is meant to protect. Instead, the nation is left with a drawn-out court case and a sense of betrayal.

Culture of impunity

The stark contrast in the treatment of employees within SSNIT underscores a systemic failure in governance. While minor infractions are met with immediate repercussions, those at the helm who orchestrated the disastrous land deal appear to face no consequences. This double standard raises serious questions about the ethical framework guiding SSNIT and its commitment to accountability.

Michael Kwame Owusu-Ansah, a policy analyst, articulated the frustration shared by many: “How can an institution justify the swift dismissal of a low-level employee for a paltry sum while allowing those who cost the Trust millions to walk free? This sends a clear message that accountability is a privilege, not a standard.”

Lack of transparency and accountability

Despite public outcry and demands for accountability, SSNIT has remained tight-lipped about the identities and roles of the officials involved in the land purchase. Citing confidentiality, the Trust has not conducted any internal investigations to determine responsibility. This lack of transparency only deepens the mistrust among Ghanaian workers who rely on SSNIT to manage their hard-earned savings.

Eno Yaa Agyemang, a labour rights activist, lamented, “The absence of accountability for those in leadership positions is a dangerous precedent. It undermines the very purpose of SSNIT as a protector of workers’ rights and savings.”

The Auditor-General’s earlier reports had already indicated significant concerns over SSNIT’s investment strategies, suggesting that many real estate ventures were poorly documented or mismanaged. Yet, despite these warnings, no substantial reforms have been implemented to safeguard against future missteps.

Role of the Lands Commission

The SSNIT land deal has also exposed troubling connections with the Lands Commission, which played a critical role in facilitating the sale of the disputed land to PPL. Investigations suggest that officials at the Commission may have been complicit in the transaction, further complicating the narrative of accountability.

This collusion highlights the need for a comprehensive overhaul of the systems that govern land transactions in Ghana. If those tasked with oversight can be implicated in such scandals, the integrity of the entire process is called into question. The public deserves to know that their institutions are functioning effectively and ethically.

The impact on trust and confidence

As the legal battle continues to drag, the failure to hold officials accountable has eroded trust in SSNIT. Ghanaian workers are left wondering whether their contributions are safe and whether those in leadership positions are truly acting in their best interests. This crisis of confidence could have far-reaching implications for the future of pension management in Ghana.

Augustine Kwame Mawutordzi, a contributor to the SSNIT fund, expressed his concerns: “If we cannot trust the guardians of our retirement funds, what hope do we have for a secure future? This situation must change, and it must change now.”

A call for change

The ongoing fallout from the SSNIT land deal serves as a critical signal for reform within the institution and its oversight bodies. The time for action is now. SSNIT must take decisive steps to restore trust and accountability, ensuring that those responsible for past failures are held accountable while implementing measures to prevent future mismanagement.

Public institutions must prioritize transparency, ethical governance, and accountability to regain the faith of the workers they serve. As Ghanaians await the outcome of the ongoing legal battle, it is imperative that this crisis catalyzes a fundamental transformation within SSNIT—one that safeguards the financial well-being of its contributors and restores confidence in the institution as a whole.

In a nation where the future of countless workers depend on the prudence and integrity of SSNIT, the stakes have never been higher. The legacy of this land deal debacle should not only be a cautionary tale but also a rallying cry for reform and accountability in the management of Ghana’s pension funds.

By Innocent Samuel Appiah

The post Nine years into a $5.4m failed SSNIT land purchase saga appeared first on Ghana Business News.

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