SSNIT clarifies participation of Rock City Hotel in quest for strategic investor

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May 20, 2024
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The Social Security and National Insurance Trust (SSNIT) has clarified that the Rock City Hotel participated in a legitimate bid and emerged as the winner following their presentation of the best and strongest technical and financial proposal amongst those received by the Trust.

The Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, in a recent post on his social media handles after a television discussion on Metro TV indicated that he has lodged a formal petition with the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate allegations surrounding the sale of six hotels by the Social Security and National Insurance Trust (SSNIT) to the Food and Agriculture Minister, Dr Bryan Acheampong.

In his petition, Mr Ablakwa asserts that there are ongoing plans to sell a controlling 60% stake in six hotels owned by SSNIT to Rock City Hotel Limited, a company reportedly owned by Dr Bryan Acheampong, who serves as the MP for Abetifi.

The hotels under scrutiny in the petition include Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort, and the Trust Lodge Hotel.

However, SSNIT in a statement issued on Sunday, 19 May 2024, explained that as part of efforts to increase efficiency, profitability, shareholder value, and the long-term sustainability of the SSNIT Pension Scheme, it went through International Competitive Tendering (ICT) processes as prescribed by the Public Procurement Act, 2003 (ACT 663), as amended by ACT 914, for the selection of a strategic investor.

For transparency and accountability, the management of the Trust commenced the process with the engagement of a Transaction Advisor through the ICT method of procurement, with the publication of advertisements in the Daily Graphic, the Ghanaian Times, and The Economist, an international magazine.

“As of the 16 January 2019 deadline, 15 firms had expressed interest in submitting bids. Of these, six were shortlisted and issued with Request for Proposal (RFP) documents. Approval was sought from the Central Tender Review Committee (CTRC) for the selection of a Transaction Advisor on 12 December 2019 and that was granted on 24 December 2019,” it said.

Following the selection of the independent Transaction Advisor to guide the selection of a Strategic investor amongst others, further advertisements for an Expression of Interest (EOI) for a Strategic Partner for the SSNIT Hotels were placed in the Daily Graphic on 3 February 2022 and in the Ghanaian Times on 7 February 2022.

The advertisement was also published in The Economist Magazine on 26 February 2022. 1 2 3 4 5 6 7 Issued by Management A total of nine companies responded to the advertisements by submitting proposals on the 23 March 2022 deadline.

“Six out of the nine were then shortlisted and issued with Request for Proposal (RFP) documents. The qualifying firms were invited for the opening of their financial proposals. Based on the technical and financial evaluation, the Rock City Hotel emerged the best,” the statement further read.

“Based on the criteria set out in the RFP, Rock City Hotel submitted the best and strongest technical and financial proposal amongst those received. Consequently, it is in negotiation with SSNIT to buy a 60% stake in each of the four hotels (Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel, and Elmina Beach Resort).

SSNIT further disclosed that since bids for Busua Beach Resort and the Trust Lodge were considered to be unsuccessful, they are no longer part of the hotels covered in this process adding that the process of getting a strategic investor is in its final stages and therefore not yet concluded.

Acknowledging the call for the Commission on Human Rights and Administrative Justice (CHRAJ) to conduct a full-scale investigation into the sale of SSNIT hotels, the management of SSNIT said it will not comment further.

“SSNIT will cooperate fully with CHRAJ throughout its investigation process. SSNIT further wishes to assure pensioners, contributors and the public of its commitment to managing the affairs of the Trust prudently for the sustainability of the Pension Scheme” the SSNIT statement concluded.

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September 16, 2024
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3 minutes Read

Ghana Link’s ICUMS Introduce Advanced Weighbridge System at Ports…

Ghana Link Network Services Ltd has completed the construction of four weighbridges at Tema Port GPHA Terminal 1 and two at the Atlantic Terminal Services in Takoradi.

While all the weighbridges provide Gross, Tare, and Net weights (i.e. standard weights) of cargoes, some of the weighbridges are multideck.

Outside the standard weights’ measurements, a multi-deck weighbridge also provides axle weights of trucks which is of interest to the Highway Authority.

The weighbridges have been integrated into ICUMS (Integrated Customs Management System), marking a significant step forward in the country’s efforts to modernize its ports and enhance revenue collection.

The move is expected to benefit multiple stakeholders, including Ghana’s Customs Division, the Ghana Ports and Harbours Authority (GPHA) with respect to the net weights, and axle weights for the Ghana Highway Authority for the protection of the nation’s road infrastructure.

The new weighbridge system, operational at both the Atlantic Terminal in Takoradi Port and at the country’s biggest port Tema Port, is designed to accurately measure imports and exports cargo weights. This precision is crucial for the proper calculation of duties and taxes on all consignments.

Norvan Acquah-Hayford, PR Manager of Ghana Link Network Services, spoke to the Media about the initiative.

“Our goal with this new module is to bring greater transparency and efficiency to Ghana’s import processes,” he stated. “By providing accurate weight measurements, we’re not only enhancing revenue collection but also contributing to fair trade practices.”

The implementation of the weighbridge system comes at a critical time for Ghana. In 2022, Ghana’s ports handled over 25 million metric tonnes of cargo, underscoring the potential impact of even small improvements in measurement accuracy.

The new system is not just about revenue, however. It also addresses a long-standing issue of road degradation caused by overloaded trucks.

By providing accurate weight information to the Ghana Highway Authority, the system will help enforce load limits, potentially saving millions in road repair costs.

The weighbridge module is integrated with the existing ICUMS, which Ghana Link introduced in 2020 to replace the previous port systems.

ICUMS has been credited with streamlining customs processes and improving revenue collection, despite initial implementation challenges.

Industry experts see the addition of the weighbridge module as a logical next step in Ghana’s digitalization journey. The system also aligns with the goals of the African Continental Free Trade Area (AfCFTA), which aims to boost intra-African trade. By providing accurate and transparent weight measurements, Ghana is setting a standard that could be emulated across the continent.

As a key transit point for landlocked countries like Burkina Faso, Niger, and Mali, Ghana’s ports play a crucial role in regional trade. The accurate weighing of transit goods will facilitate smoother cross-border transportation and potentially reduce disputes over cargo weights at inland borders.

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September 5, 2024
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3 minutes Read

Government launches restructuring offer for $13bn of its bonds

Ghana invited holders of roughly $13 billion of its international bonds to swap their holdings for new instruments on Thursday, more than two months after reaching a preliminary restructuring agreement with two bondholder groups.

Bondholders have until Sept. 30 to accept the offer though those who agree to do so before an early deadline on Sept. 20 will be eligible for a 1% consent fee, the government said in its “exchange offer and consent solicitation” published in a regulatory statement on the London Stock Exchange.

The gold and cocoa producer defaulted on most of its $30 billion of international debt in 2022, as the strain of the COVID pandemic, war in Ukraine and higher global interest rates tipped it into crisis.

It is overhauling its debt under the G20 Common Framework, which has seen Zambia and Chad also reach agreements.

Ethiopia is expected to be next, but the setup has been widely criticised for being slow and cumbersome.

A committee of Ghana’s international bondholders said in a statement that it supported the restructuring offer. It said it was important for Ghana to sustain economic reforms to eventually regain access to international financial markets.

A regional group representing holders of over 25% of the bonds said in a statement they too supported the offer, adding that they will “continue to invest and contribute towards creating a more dynamic economy”.

Bondholders will have the chance to swap their holdings for a so-called “disco” bond, offering an interest rate of 5% climbing to 6% after mid-2028, and with maturities across three instruments ranging between 2026-2029.

That option will come with a writedown of principal of 37%.

The second is a par bond option capped at $1.6 billion with three instruments, of which the main one will pay a coupon of 1.5% and mature in 2037 with no haircut apart from a writedown of past due interest. The offer will last for 21 days.

The agreement will see Ghana’s bondholders forego about $4.7 billion of their loans and provide cash flow relief of about $4.4 billion up until 2026 when the country’s current International Monetary Fund programme ends.

Godfred Bokpin, an economist and finance professor at the University of Ghana, said Thursday’s announcement was an important milestone in the country’s restructuring efforts.

“With this, investors now have a fair understanding of their losses and they can move on,” he told Reuters.

The new bonds will be issued on Oct. 9, the government statement said.

Holders of the Ghana 2030 international bond that was partially guaranteed by the World Bank and is also part of the restructuring would receive their guarantee payment the same day or as soon as possible thereafter.