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John Dramani Mahama, the flagbearer of the National Democratic Congress (NDC), has voiced strong criticism of President Nana Addo Dankwa Akufo-Addo’s recent remarks on the failed attempt to sell hotels owned by the Social Security and National Insurance Trust (SSNIT). According to Mahama, these comments reflect a significant disconnect between the President’s views and those of the broader Ghanaian public.
Speaking at the launch of the NDC manifesto on Saturday, August 24, in Winneba, Mahama expressed concern over the country’s current direction. He stated, “The majority of our citizens are convinced our country Ghana is going in the wrong direction. Faith in our democracy is at its lowest, and many of our youth do not believe that constitutional governance is working for them. Faith in our democratic institution, and the political leadership is at the lowest ebb. Corruption is at its highest and Ghanaians are numb to the scandals that are exposed almost every week.”
Mahama also highlighted the gap between the President and the people, saying, “And when you have a President who says he does not understand the hullaballoo about the sale of SSNIT hotels to a minister in his government, then clearly, he is on a completely different wavelength than the rest of the country.”
President Akufo-Addo had earlier dismissed the controversy surrounding the proposed sale of SSNIT hotels, describing the public outcry as unnecessary. Speaking at the Trades Union Congress (TUC) quadrennial conference in Kasoa on Tuesday, August 20, the President cited SSNIT’s recent GHS 230 million surplus as evidence of the trust’s improved performance. He remarked, “Take note of the improved performance of SSNIT which recently announced a surplus of GHS 230 million on its operations, this should be reassuring to organized labour and perhaps bring into sharper relief the unnecessary controversy that was recently generated by SSNIT’s efforts to offload non-performing assets in its hotel portfolio.” He further urged, “All of us need to be measured when it comes to making decisions or pronouncements that will affect the long-term interests of pensioners.”
The situation escalated when former Chief Justice Sophia Akuffo accused SSNIT’s management of deliberately running down the hotels to facilitate their sale to insiders. In an interview with TV3’s Alfred Ocansey on Thursday, July 25, she stated, “Of course, SSNIT will justify it because they have run down the hotels and just like in the public sector a lot of public properties have been run down just so that the value will be run down and always at the end of some cycle or the other they do sweetheart deals and do this distribution among themselves.”
SSNIT swiftly responded to these allegations, issuing a statement on July 29 denying the claims. The statement read, “We wish to emphasise that the allegations of deliberate mismanagement of SSNIT hotels are false and undermines the integrity and confidence in the Pension Scheme. Allegations of this nature, without substantiated evidence, create unnecessary tension among stakeholders and potentially detract the public from the constructive dialogue needed to address genuine issues.” SSNIT assured pensioners, contributors, and the public of its commitment to managing the trust’s assets sustainably.
SSNIT further explained that despite efforts to improve the performance of the hotels by restructuring ownership, bringing in private management companies, and providing financial support for maintenance and capital expenditure, the results were insufficient to justify continued investment. SSNIT reiterated, “As we have previously noted, although we have seen some improvement in the performance of the hotels, this has been far below what we require to finance growth and capital expenditure. Returns had been low or negative, and most of them had been making persistent losses and not paying dividends. Hence, the steps to bring in a strategic investor, which we have now terminated.”
The controversy surrounding the sale of SSNIT’s hotels intensified following public disclosure of Rock City Hotel’s involvement. Owned by Agriculture Minister Bryan Acheampong, Rock City Hotel had emerged as the sole investor meeting the criteria to purchase 60% of SSNIT’s shares in the hotels. The proposed sale, however, faced significant backlash from the public, with many expressing concerns over the loss of state assets.
North Tongu MP Samuel Okudzeto Ablakwa was among the most vocal critics, organizing protests against the sale and accusing state officials of attempting to “loot and share” public assets. The outcry led the National Pensions Regulatory Authority (NPRA) to instruct SSNIT on June 28 to suspend negotiations with Rock City pending further evaluation and engagement.
Despite this, Employment and Labour Relations Minister Ignatius Baffour-Awuah confirmed in Parliament on July 11 that the NPRA had ultimately given SSNIT the green light to proceed with the sale, stating, “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 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.”
The continued opposition, particularly from labor unions, ultimately led SSNIT to terminate the controversial sale of its hotel shares on July 12. SSNIT Board Chair Elizabeth Akua Ohene announced, “The Board and management of Social Security and National Insurance Trust (SSNIT) wish to inform the public that the process to divest 60% of SSNIT’s stake in the hotels has been terminated.”
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