Pensions Regulatory Authority orders SSNIT to suspend sale of hotels to Rock City

“In order to assist the Authority to better understand the facts surrounding the sale and pending negotiations to engage Rock City Hotels Limited as a strategic investor, you and your team appeared at the Authority’s Board meeting on Tuesday, 25 June 2024 to provide further, albeit inconclusive, insight into the matter. The Authority appreciates the efforts and commitment shown to date by you and your team in assisting us in making the necessary decision on this matter, in accordance with our function under section 7(g) of the National Pensions Act 2008 (Act 766) which mandates us to “regulate and oversee the implementation of the Basic National Social Security Scheme (BNSSS)”. the letter said, among other things.

The Authority stressed that this decision was in line with its mandate to oversee and direct the Trust’s investment decisions under the National Pensions Act 2008 (Act 766).

The letter dated June 28, 2024, highlighted that the NPRA had sought additional insights from the SSNIT at a meeting on June 25, 2024. While the discussions were comprehensive, they remained inconclusive. The NPRA acknowledged the efforts of Osafo-Maafo and his team in assessing the proposed sale.

In addition, the NPRA relied on Section 67(2) of the Act, which requires the Authority to issue guidelines for investment decisions, to justify the suspension of negotiations with Rock City Hotel Limited.

“As you may be aware, Section 67(2) of the Act requires us to issue relevant guidelines to assist your investment decisions. In compliance with this requirement, you are hereby directed by the Board of the Authority to stay all proceedings aimed at engaging Rock City Hotel Limited as a strategic investor for the sale of the above hotels.” the NPRA letter was added.

Samuel Okudzeto Ablakwa, MP for North Tongu, celebrated the directive as a triumph on social media. He described it as “significant opening victory” in the fight against what he sees as “State takeover”, and calls for continued vigilance and resistance.

Ablakwa has been vocal about alleged state capture, particularly criticising the involvement of government officials in the privatisation of state property. He organised a demonstration called “Hands off our hotels” in Accra to protest against the sale of shares in SSNIT Hotels.

This development represents a critical turning point in the ongoing scrutiny of government transactions involving state assets and reflects general public sentiment and calls for transparency and accountability in such transactions.