SSNIT denies wrongdoing in sale of 60 percent stake in hotels to Rock City Hotel

The Social Security and National Insurance Trust (SSNIT) has come forward to deny any wrongdoing in the sale of its 60 percent stake in four prominent hotels to Rock City Hotel Limited.

These hotels include the Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel, and Elmina Beach Resort.

SSNIT has emphasized that the sale process adhered to all necessary legal and procedural standards, aiming to ensure the best possible outcome for all stakeholders involved.

SSNIT provided further details about the sale process, noting that the bids for the Busua Beach Resort and the Trust Lodge were considered unsuccessful.

As a result, these two properties are not included in the current transaction and remain under SSNIT’s ownership for the time being.

The unsuccessful bids highlight the rigorous selection process that was in place to ensure that only the most viable proposals were considered.

In its statement, SSNIT clarified that the process of securing a strategic investor for the hotels is in its final stages.

This means that while significant progress has been made, the transaction has not yet been fully concluded.

The final stages involve detailed negotiations and due diligence to ensure that the chosen investor, Rock City Limited, is fully prepared to take over the operations of the hotels and maintain the high standards expected by SSNIT and its stakeholders.

The decision to sell a majority stake in these hotels comes as part of SSNIT’s broader strategy to optimize its investment portfolio.

By bringing in a strategic investor like Rock City Limited, SSNIT aims to enhance the performance and profitability of these assets.

The management believes that this move will ultimately benefit the contributors to the SSNIT scheme by ensuring a more robust return on investment.

However, the sale has not been without controversy. The Commission on Human Rights and Administrative Justice (CHRAJ) has initiated an investigation into the transaction, prompted by concerns raised by various stakeholders.

In response, SSNIT has stated that it will fully cooperate with CHRAJ throughout the investigation process.

The management is confident that the investigation will validate the integrity of the sale process and demonstrate that it was conducted in a transparent and accountable manner.

Given the ongoing investigation, SSNIT has decided not to comment further on the specifics of the transaction.

This decision is in line with best practices to ensure that the investigation can proceed without any undue influence or interference.

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SSNIT’s management is committed to transparency and accountability and believes that its cooperation with CHRAJ will underscore this commitment.

The involvement of CHRAJ in the investigation highlights the importance of oversight and the need for public institutions to adhere to the highest standards of governance.

SSNIT’s willingness to engage with the investigation reflects its confidence in the processes it has followed and its commitment to maintaining public trust.

SSNIT’s engagement with Rock City Limited also underscores the importance of strategic partnerships in the hospitality industry.

By aligning with a capable investor, SSNIT aims to leverage Rock City Limited’s expertise and resources to drive growth and enhance the value of its hotel assets.

This strategic move is expected to result in improved services, better management practices, and increased patronage at the hotels.

In summary, SSNIT’s sale of a 60 percent stake in four of its hotels to Rock City Limited has been a carefully considered decision aimed at optimizing its investment portfolio and ensuring better returns for its contributors.

Despite the scrutiny and the ongoing investigation by CHRAJ, SSNIT remains confident in the integrity of the sale process and looks forward to a positive outcome from the investigation.

The organization’s proactive approach in addressing the concerns raised and its commitment to cooperating with the investigation demonstrate its dedication to transparency and accountability.

This transaction is a strategic move to enhance the performance and profitability of SSNIT’s investments, ultimately benefiting the contributors to the SSNIT scheme.

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