Mr. Samuel Okudzeto Ablakwa, the North Tongu Member of Parliament (MP) and the leader for the “Hands off our hotels demonstration” has disclosed that Labadi Beach Hotel and Ridge Royal are more profitable than Rock City Hotel.
Mr. Ablakwa was addressing the media at a news conference ahead of the ‘Hands Off Our Hotels Demonstration’, scheduled for today, 18th June, 2024 which include the Minority Caucus in Parliament, Representatives of Organized Labour, United GaDangme Caucus, La Youth Groups and Arise Ghana against the sale of the hotels belonging to the Social Security and National Insurance Trust (SSNIT).
“Labadi Beach Hotel and Ridge Royal are more profitable than Rock City Hotel owned by Bryan Acheampong,”he revealed, “Labadi Beach Hotel made a profit of Gh158 million last year. How can anybody claim that these are assets that are not performing, that are making losses, and should be sold? Only last year, Labadi Beach Hotel paid dividends to the government amounting to 25 million Ghana cedis,” he said.
He further disclosed that the campaign to protect these hotels has garnered widespread national support. “This matter, which began in Parliament with the Minority Caucus raising objections, has grown beyond just a minority affair. It has become a national crusade to protect our hotels,” Mr. Ablakwa said
“The SSNIT hotel sales are purely crude state capture,” Mr. Ablakwa said adding, “Labadi Beach Hotel is a thriving business that generates substantial revenue, far outpacing Rock City Hotel owned by Bryan Acheampong. It is wrong for ministers and politically exposed persons to buy state assets, especially when they are profitable.”
“State assets should not be deliberately run down so that politicians can successfully sell them to themselves,” he emphasized. “We need our government to commit to our Private Member’s Bill banning politicians from buying state assets when they leave office.”
“State assets are for all Ghanaians, not a few greedy, unpatriotic politicians. We stand united against the privatization of our national wealth.”
The MP also noted that the group has reached an agreement with the Police to terminate the protest at the Christ the King Catholic Church close to the Jubilee House, contingent upon officials from the presidency meeting the demonstrators to receive their petition for submission to the President.
“We have agreed with the Police on the condition that the representatives of President Nana Addo Dankwa Akufo-Addo will walk from the Jubilee House and meet us at the Christ the King Catholic Church to receive our petition,” he explained.
The protest will begin at 8:00am in front of the Labadi Beach Hotel, proceed to the La Palm Royal Beach Hotel, and continue through Giffard Road leading to the Lands Commission.
Mr. Ablakwa has petitioned the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate the transaction.
Since 2018, the Social Security and National Insurance Trust (SSNIT) has been on a mission to divest a 60% stake in six hotels within its portfolio – Labadi Beach Resort, Elmina Beach Resort, La Palm Royal Beach Resort, Ridge Royal Hotel, Busua Beach Resort, and the Trust Lodge Hotel.
Among the bidders, Bryan Acheampong, the current Minister for Food and Agriculture and owner of Rock City Hotel, reportedly submitted the strongest technical and financial proposal amongst those received to purchase the 60% stake in the hotels.
SSNIT posits that the strongest technical and financial proposal from Rock City Hotel Limited was one of the factors leading to their being chosen as the right firm to purchase SSNIT’s stake in the hotels.
On why the Hotels are being sold, SSNIT indicated that apart from raising capital and finding experts to manage the hotels, the ultimate goal for the sale of its stake was to manage investment risks to improve investment returns.
SSNIT said the key to managing investment risks was the implementation of an asset allocation policy and undertaking investments in line with the policy.
However, the Trust noted that SSNIT restructuring of non-performing companies was a priority in its decision to give out the hotels.
Explaining the rationale for the investment decision for the sale of part of SSNIT’s holdings in the hotels, it cited consistent losses, frequent requests for maintenance funding, capital injections required, high capital expenditures and the need for strategic partnership.
