President of IMANI Africa, Franklin Cudjoe, has lauded the decision made by the Social Security and National Insurance Trust (SSNIT) to divest its stake in six hotels, deeming it a prudent course of action.
Mr Cudjoe, in a Facebook post on Tuesday, May 21, 2024, expressed his approval of SSNIT’s move to engage the private sector in co-investing in hotels owned entirely by the trust but facing operational inefficiencies.
He described the move as “sensible”, contending that this approach would result in a more efficient allocation of resources, benefiting both SSNIT and the broader economy.
According to Mr. Cudjoe, divesting from these hotels would infuse liquidity into SSNIT’s operations and curtail political interference in managing these assets.
Mr Cudjoe’s comment follows a formal petition lodged by North Tongu MP, Samuel Okudzeto Ablakwa, with CHRAJ to investigate the processes surrounding the sale of six hotels.
The hotels mentioned 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.
However, SSNIT clarified that the bids were successful for only four hotels and not the entire six as claimed by the MP.
Mr Ablakwa’s petition calls for an investigation of various allegations, including conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft.
“I think it is sensible for a state behemoth such as SSNIT, eternally abused by past and present politicians to scale down its real estate business, which has never been profitable.”
“Similarly, SSNIT should seek private sector participation (co-investment) in wholly-owned hotels which are all not running efficiently. Not only will that free up some liquidity, but it will also amputate the long arm of the politicians, which tend to reach into the brick-and-mortar businesses over which SSNIT has control.”
“That said, I will support any competitive divestiture that brings on board more money, technology, skills and preserves Ghanaian management. I think the investment plan proposed, and the price agreed for the 4 hotels is fair.”
—————-
Explore the world of impactful news with CitiNewsroom on WhatsApp!
Click on the link to join the Citi Newsroom channel for curated, meaningful stories tailored just for YOU: https://whatsapp.com/channel/0029VaCYzPRAYlUPudDDe53x
No spams, just the stories that truly matter! #StayInformed #CitiNewsroom #CNRDigital