Samuel Okudzeto Ablakwa faces potential legal consequences for sharing a disputed document purported to be RockCity’s 2023 account filed with the Ghana Revenue Authority (GRA).
During an appearance on the “Good Morning Ghana” show on Metro TV, the North Tongu MP claimed he intercepted the document from the GRA, alleging it detailed RockCity Hotels’ losses for 2023.
In response, the Minister of Arts, Tourism, and Culture, Hon. Andrew Kofi Egyapa Mercer, stated that RockCity Hotel has not yet filed its 2023 accounts.
“RockCity has not filed its account for 2023, so how credible is this document from Ablakwa? Do you know you can be taken on by RockCity for forgery?” Egyapa Mercer questioned.
He further challenged the authenticity of the document, noting discrepancies between Ablakwa’s alleged GRA document and official GRA tax filings.
Following the controversy, Samuel Okudzeto Ablakwa remained silent on the matter.
Meanwhile, RockCity Hotel’s legal team has secured the video of Ablakwa’s statements on the “Good Morning Ghana” show and is preparing to sue him for forgery.
Background
Mr. Samuel Okudzeto Ablakwa, the Member of Parliament for North Tongu, has been leading a campaign against Dr. Bryan Acheampong, the Minister for Food and Agriculture, despite the facts surrounding the sale of SSNIT’s hotels.
Mr Ablakwa’s campaign, which has been largely waged on social media, has proven to be misinformation and politically motivated.
The facts surrounding the sale of the hotels, as outlined by SSNIT, suggest that the transaction was conducted transparently and rigorously, with multiple bids received and a thorough evaluation process undertaken.
The sale is expected to improve SSNIT’s financial performance and ensure the sustainability of the national social security scheme.
In light of these facts, many have called on Ablakwa to cease his campaign of misinformation and distraction, and instead focus on working in the interests of the Ghanaian people.
His continued antics have been seen as a disservice to the country and a violation of the trust placed in him as a member of parliament.
Justification for SSNIT’s Sale of a 60% Stake in each of its Six Hotels
The Social Security and National Insurance Trust (SSNIT) has justified the sale of a 60% stake in each of its six hotels, citing the need to manage investment risks and improve investment returns.
The trust has been facing challenges with its hotel investments, with some of the hotels making losses and not paying dividends.
Overview of SSNIT Functions
SSNIT is a statutory public trust that manages the national social security scheme in Ghana.
The trust provides assurance of pension payments for life, increases pension payments every year, and pays benefits to nominated dependents in the event of death or incapacitation.
Rationale for Investment Decision
The trust has invested in six hotels, but the investments have not yielded the expected returns. The hotels have been making losses, and some have not paid dividends in years.
The trust has therefore decided to sell a 60% stake in each of the hotels to manage investment risks and improve investment returns.
The Six Hotels
The six hotels are La Palm Royal Beach Hotel, Elmina Beach Resort, Busua Beach Resort, Ridge Royal Hotel, Trust Lodge, and Labadi Beach Hotel.
The hotels have been valued independently by a reputable specialist firm, and the valuation methods used include the replacement cost basis, going concern basis, and the price of recent investment methodology.
Track Record of the Hotels
The hotels have a poor track record, with some making losses and not paying dividends.
La Palm Royal Beach Hotel has made losses in eleven out of the past fourteen years, while Elmina Beach Resort has made losses in nine out of the past fourteen years.
Busua Beach Resort has also made losses in nine out of the past fourteen years. Ridge Royal Hotel has made losses in all eight years of operation, while Trust Lodge has made losses in two out of the past fourteen years.
Labadi Beach Hotel has consistently paid dividends over the years.
Procurement Process
The trust followed a rigorous procurement process in selecting a strategic investor.
The process included international competitive tendering and the selection of a transaction advisor.
The transaction advisor, SEM Capital, led a consortium of four firms that included legal, asset valuation, and hotels expertise
Valuation & Bid Results
The hotels were valued independently by the transaction advisor, and the valuation methods used included the replacement cost basis, going concern basis, and the price of recent investment methodology.
The total bid by Rock City Hotel for the four hotels was above the valuation placed on the hotels.
Grand Regency Valuation & Sale
The value for 25% of the Grand Regency Hotel based on the latest valuation done prior to the transaction was GHS6.684 million. The sale price of GHS7.4 million implies a gain on the sale of approximately GHS0.716 million when compared to the valuation.
In conclusion, the sale of a 60% stake in each of SSNIT’s six hotels is a strategic decision to manage investment risks and improve investment returns. The trust has followed a rigorous procurement process, and the valuation of the hotels has been done independently by a reputable specialist firm.
The sale is expected to improve the trust’s financial performance and ensure the sustainability of the national social security scheme in Ghana
