Sale of hotels is the only way to revive losses incurred – SSNIT

The Director-General of the Social Security and National Insurance Trust (SSNIT), Kofi Bosompem Osafo-Maafo, has refuted allegations by former New Patriotic Party (NPP) Chairman, Freddie Blay, that the trust rejected a $200 million offer from his son’s company to purchase a 60% stake in SSNIT hotels.

According to Osafo-Maafo, the proposal was rejected during the initial bidding process due to its weak technical proposal, which scored below 50%.

The sale of the 60% stake in SSNIT’s six hotels has generated controversy and public uproar in the last few weeks after the Member of Parliament for North Tongu, Okudzeto Ablakwa, questioned the move and consequently, filed a petition with CHRAJ accordingly.


This decision led to widespread protest among workers of the hotels and Ghanaians at large, seeking more clarification on the decision of the sale of the hotels.

However walking the press through its decision, Director General of the Social Security and National Insurance Trust, Kofi Bosompem Osafo-Maafo explained that the said hotels were constantly incurring losses and unable to meet their targets.


“Looking to reduce our stake in the hotel, it’s a no brainer. If you look at these hotels they are capital intensive, they require heavy and periodic capital expenditure. The businesses have been making consistent losses by and large or returns that we seem below acceptable,” Osafo-Maafo said.

He emphasized that the trust followed due process and did not breach any procurement laws.

“We go through a very rigorous process and this paper is on an assessment of the terms of payment and says we don’t find it acceptable”.

He advised Ghanaians to ignore speculations that the trust rejected former National Chairman of the New Patriotic Party, Freddie Blay’s son’s millions of dollars to buy a 60 per cent stake in its hotels.

“The claim that has been made by Mr. Freddie Blay that his son’s company Spartan Ives bid a 150-200 Million Dollars and SSNIT turned it down. Their technical proposal was weak and they scored below 50%, the envelope was not even opened and was returned to them”.

The six hotels SSNIT is offloading its 60% stake in them include La Palm Royal Beach Hotel, Busua Beach Resort, Ridge Royal Hotel, Elmina Beach Resort, Labadi Beach Hotel, and Trust Lodge.

By: Zoe Anita Odei | | Ghana

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