The Minister of Employment and Labour Relations, Ignatius Baffour Awuah has, disclosed that the National Pensions Regulatory Authority (NPRA) has granted approval for SSNIT to sell 60% of its shares in its hotel investment portfolio.
Following this decision, on June 28, the NPRA directed SSNIT to suspend ongoing negotiations with Rock City concerning the sale of four hotels, pending further evaluation and engagement. Responding to inquiries on the floor of Parliament, the sector minister affirmed that all required protocols have been adhered to.
“Yes, it is true that NPRA came up with a directive, but I would appreciate it if my brother, my colleague, really read the directive from NPRA. It said it needed to be finished with all information relating to the sale of the hotels, which SSNIT has since done that.
“So, it wasn’t like a direct something that SSNIT should not go ahead to do anything, but then, SSNIT can only go ahead when NPRA, which is the regulator within the field, had actually certified that they have seen all the documentation and the processes, and they think that we are good to go.
“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.”
He also provided reasons for SSNIT’s decision to sell 60 percent of its shares in the hotels.
“70-60% of its shares are deemed the most viable solution to prevent further depletion of resources and to bring in private participation.”
“Is it a good business activity? Yes, I want to believe my colleague is listening to me fully, well because I answered by saying that some of the investments are either making low returns or making losses.
“In some cases, we are not experiencing losses, but even for those that are profitable, the rate of returns is lower”.