{"id":102433,"date":"2025-11-08T00:23:00","date_gmt":"2025-11-08T00:23:00","guid":{"rendered":"https:\/\/sotnews.agency\/?p=102433"},"modified":"2025-11-08T00:23:00","modified_gmt":"2025-11-08T00:23:00","slug":"how-politicisation-cripples-ssnits-gh%c2%a2233-8-million-hotel-portfolio","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=102433","title":{"rendered":"How \u2018politicisation\u2019 cripples SSNIT\u2019s GH\u00a2233.8 million hotel portfolio"},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>3 Minute, 43 Second <\/div>\n\n <\/div>
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The quest to salvage key assets within the hospitality portfolio of the Social Security and National Insurance Trust (SSNIT) has hit a deadlock, with a leading parliamentary watchdog attributing the failure to attract investors to the deep politicisation of state economic issues.<\/p>\n

Davis Ansah Opoku, Vice Chairperson of the Public Accounts Committee (PAC), delivered a scathing assessment on Friday, November 7, emphasising that the institutional imperative to secure pensioners\u2019 future is being undermined by a corrosive public environment that stifles private sector intervention.<\/p>\n

Mr. Opoku highlighted the urgent need to divest from loss-making ventures to protect the trust\u2019s massive investment base, which stood at a total portfolio of GH\u00a215,918.69 million as of December 31, 2023. <\/p>\n

This impressive figure, which reflects a compound annual growth rate (CAGR) of 16.31% over the past few years, is jeopardised by the bleeding hospitality sector.<\/p>\n

Mr. Opoku pointed to a worrying three-year period during which crucial assets have remained unattractive to potential buyers.<\/p>\n

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\u201cSSNIT is an institution that holds monies for pensioners, and when these monies are invested in ventures that ought to be profitable but end up running at losses, it is important to bring these matters to the fore,\u201d he stated in an interview with Channel One.<\/p>\n<\/blockquote>\n

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\u201cFor the past three years, we have still not had any investor showing interest in these defunct hotels. For me, it points to one thing being clear: the politicisation of issues in this country hurts the country. If a local investor has what it takes to invest in these hotels that are running losses, we ought to encourage them.\u201d<\/p>\n<\/blockquote>\n

He further championed the involvement of local expertise to turn around these distressed assets.<\/p>\n

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\u201cI am one person who has been a champion of local investors taking over state interests that need a bit of surgery,\u201d he added.<\/p>\n

The Numbers: A GH\u20b5233.8 Million Burden on the Trust<\/p>\n<\/blockquote>\n

The Public Accounts Committee confirmed SSNIT\u2019s current strategy: actively seeking strategic investors for struggling entities under the Golden Beach Hotels Group, specifically naming La Palm Beach Hotel and Elmina Beach Resort. <\/p>\n

It was clarified that high-performing assets such as the Labadi Beach Hotel, Ridge Royale, and SSNIT Guest House are explicitly not part of this urgent investment drive.<\/p>\n

The financial data underscores why intervention is critical for the underperforming hotels:<\/p>\n

\n\n\n\n\n\n\n\n\n
Hotel Property<\/strong><\/td>\nLoss Years (Out of 14)<\/strong><\/td>\nDividend Payments<\/strong><\/td>\n5-Year Average Profitability<\/strong><\/td>\nAverage Return on Equity (ROE)<\/strong><\/td>\n<\/tr>\n<\/thead>\n
La Palm Beach Hotel<\/strong><\/td>\n11<\/strong><\/td>\nNever Paid<\/strong><\/td>\nGH\u20b56.7 million<\/td>\n-4.2%<\/strong> (2012-2017)<\/td>\n<\/tr>\n
Elmina Beach Resort<\/strong><\/td>\n9<\/strong><\/td>\nNever Paid<\/strong><\/td>\nGH\u20b5740,604<\/td>\n-4.8%<\/strong> (2010-2017)<\/td>\n<\/tr>\n
Busua Beach Resort<\/strong><\/td>\n9<\/strong><\/td>\nNever Paid<\/strong><\/td>\nGH\u20b532,268<\/td>\n-31.7%<\/strong> (2010-2017)<\/td>\n<\/tr>\n
Labadi Beach Hotel<\/strong><\/td>\n2<\/strong><\/td>\nConsistent<\/strong><\/td>\nGH\u20b518 million<\/td>\n5.2%<\/strong> (2012-2022)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n

In total, SSNIT has poured a colossal GH\u20b5233.8 million into La Palm, Elmina, and Busua, in the form of payments, including shareholder loans, yet the Trust has received zero return on equity or loan servicing. In stark contrast, the Labadi Beach Hotel alone has reportedly paid GH\u20b548.1 million in dividends over the last five years, demonstrating the massive discrepancy in performance across the portfolio.<\/p>\n

The Failed 2024 Rock City Bid and Political Fallout<\/strong><\/p>\n

The current investor search follows the dramatic collapse of the 2024 attempt to offload a 60% stake in a bundle of SSNIT hotels to Rock City Hotel Limited, a company owned by the then Minister of Food and Agriculture, Dr. Bryan Acheampong. <\/p>\n

The proposed deal, which initially included the performing Labadi Beach Hotel, triggered widespread political and labour opposition, leading to the bid\u2019s withdrawal.<\/p>\n

Key details surrounding the controversy:<\/p>\n