Home / News / “Gov’t is not selling any hotels; it is floating shares” – Palgrave on SSNIT saga

“Gov’t is not selling any hotels; it is floating shares” – Palgrave on SSNIT saga

Government spokesperson on Governance and Security, Palgrave Boakye-Danquah, has clarified President Akufo-Addo-led government’s intentions towards the sale of Social Security and National Insurance Trust (SSNIT) hotels.

He highlighted that government is seeking to float shares in order to boost revenue and involve private sector expertise.

Mr. Boakye-Danquah’s explanation follows growing concerns by some political critics, which led to the staging of a protest spearheaded by the Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa.

The demonstration, which was supported by organised labour and other civil society organisations, was to pile pressure on the government to block the transaction.

“Ghanaians must know that there is no sale of hotels; it is floating of shares. Stop misleading Ghanaians; we are not selling any hotel; it’s the floating of shares; 60% of the shares,” he stressed.

The NPP spokesperson dismissed claims of “state capture” by opposing parties, emphasising that the government’s strategy to float shares in state-owned hotels is not a form of capitalism.

He added that the Minority’s assertions are misguided, attributing it to the fact that they have failed to grasp the true nature of the decision.

“There is no ‘state capture’, unless, of course, the NDC does not understand what is going on with the investment of SSNIT; they should look at the investments of SSNIT in a value chain,” he told the host.

He added that “the fact that Rock City has not made as much profit as they expected doesn’t mean that they cannot go ahead and purchase hotels; it doesn’t mean that the investment Rock City has made and the level of financial muscle they have will not give them the capacity to purchase more. The hotel industry is like the aircraft industry; it’s got its very peak season and its very low season.”

In May, the Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, blew the whistle on the deal and raised concerns about why SSNIT would sell 60% of its stake in the hotels to a minister of state.

Despite the requests from the Minority and a petition to the Commission on Human Rights and Administrative Justice (CHRAJ) for the president to halt the sale of the hotels, the Ghana Federation of Labour has alleged that SSNIT is proceeding with talks to sell its stake in four hotels to Rock City Hotel, owned by Minister of Agriculture, Bryan Acheampong.

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