Ablakwa provides ‘evidence’ to back Rock City Hotel losses claim

Samuel Okudzeto Ablakwa, the Member of Parliament for North Tongu, has released documents as evidence to back up his claims that Rock City Hotel is operating at losses.

This development follows Ablakwa’s staunch opposition to the Social Security and National Insurance Trust’s (SSNIT) decision to sell 60 percent of its shares in four hotels to Rock City Hotel, alleging the hotel’s unprofitability.

Ablakwa had promised to provide evidence to support his assertion.

Bryan Acheampong, the Minister for Food and Agriculture and owner of Rock City Hotel, had refuted these allegations, challenging Ablakwa to present proof. Acheampong maintained that his hotel was not operating at a loss.

In a recent interview on Accra-based Metro TV, Ablakwa revealed documents indicating that Rock City Hotel had reported to the Ghana Revenue Authority (GRA) on March 12, 2021, projecting losses for that year, contradicting Acheampong’s assertions.

Furthermore, Ablakwa alleged that Rock City Hotel failed to file tax returns with the GRA for the entire year of 2022, bolstering his claims about the hotel’s financial struggles and questionable business practices.

“On March 12, 2021, they posted returns stating they would incur losses that year,” Ablakwa stated. “Then, two years later, on March 9, 2023, they made a debit adjustment involving two withholding taxes totaling GHC20,782. That’s all for 2021.

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They informed the GRA in March that they would make losses,” he continued.

He further elaborated, “As for 2022, there were no filings at all. After I went to the Commission on Human Rights and Administrative Justice (CHRAJ) on May 17 and broke the news on this show, they rushed to the GRA the following week.

On May 23, 2024, they attempted to fulfill their tax obligations for 2022. This raises questions about how the hotel obtained a tax clearance certificate to participate in the bid without filing taxes for two years.”

Ablakwa questioned the legitimacy of Rock City Hotel’s participation in the SSNIT bid, pointing out that they did not have a tax clearance certificate at the time.

“After my exposé, they went to the GRA on May 23, 2024, stating they made losses for 2022. They then changed their stance on the same day, claiming they made profits and agreeing to pay a tax liability of GHC395,000. They were also fined GHC4,390 by the GRA,” Ablakwa noted.

He referenced a SSNIT statement from May 19, which indicated that the process to sell the hotels began in 2018, with the transaction advice received in the same year.

The tender for the sale was initiated in 2022, during which Rock City Hotel had not filed taxes for two years.

“After my exposé, they rushed to the GRA twice, first claiming losses in 2022, then amending their records to report profits, and paid a penalty,” Ablakwa emphasized.

He further revealed that Rock City Hotel only filed its taxes on April 20, 2023, projecting losses for the year.

“I pointed out that Rock City Hotel, which reported no profits to the GRA, is now set to buy Labadi Beach Hotel, which made a profit of GHC158 million. This should have been the other way around. Labadi Beach Hotel is more profitable,” Ablakwa asserted.

“I based my statements on documents and intercepted filings at the GRA,” Ablakwa concluded, stressing the importance of transparency and accountability in the transaction.

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