In a significant development, Organized Labour has called an urgent meeting with its members today to discuss the recent approval by the National Pensions Regulatory Commission (NPRA) for the sale of SSNIT's shares in six hotels.
The meeting aims to deliberate on the next steps following the NPRA's green light for the sale.
The NPRA had initially directed the Social Security and National Insurance Trust (SSNIT) to halt its negotiations with Rock City concerning the sale of four hotels until further evaluation and engagement were conducted.
This directive, issued on June 28, was intended to ensure all necessary processes and documentation were completed.
However, during a parliamentary session on Thursday, July 11, Employment and Labour Relations Minister Ignatius Baffour-Awuah confirmed that the NPRA has now given the go-ahead for the sale.
He stated that the NPRA was satisfied that SSNIT had complied with all due processes.
"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 furnished with all information relating to the sale of the hotels, which SSNIT has since done," Minister Baffour-Awuah explained.
He emphasized that the NPRA's directive was not an outright prohibition of the sale but rather a requirement for SSNIT to provide comprehensive documentation and follow all procedural steps.
"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."
The Employment and Labour Relations Minister further outlined the reasons behind the decision to sell SSNIT's 60 percent shares in the hotels.
He explained that the move was a strategic decision after multiple restructuring attempts proved inadequate.
The sale aims to prevent further depletion of resources and bring in private sector participation.
"SSNIT considered only the sale of shares for its hotel investment portfolio as a strategic decision after multiple attempts at restructuring proved insufficient. 70-60% of its shares are deemed the most viable solution to prevent further depletion of resources and to bring in private participation," Minister Baffour-Awuah said.
He also addressed concerns about the business viability of the hotels, acknowledging that some of the investments were either generating low returns or incurring losses. "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."
As Organized Labour meets to discuss these developments, the outcome of their deliberations could significantly impact the future of SSNIT's hotel investments and the broader implications for the pensions and labor sectors in Ghana.
Story by: Thinknewsonline
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