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Rock City said it was writing to inform SSNIT of its decision to withdraw its bid and discontinue its pursuit of the investment opportunity
The management of Rock City, in a letter addressed to the director general of the Social Security and National Insurance Trust (SSNIT), Kofi Osafo-Maafo, has withdrawn its bid to acquire a 60% share in four hotels belonging to SSNIT.
The Rock City statement, dated Friday 12 July 2024, reads as follows: “At all material times, we believed that we had participated in an internationally competitive bid and were happy to have learned of our success having edged out the 15 other organisations that participated in the process.
“It therefore came as a total surprise to us that some of your stakeholders have raised concerns about your decision to seek strategic partners for these hotels. We have also taken note of ongoing media discussions on your decision to seek strategic investors for these hotels. We have also taken note of your recent media engagements and press statements ostensibly defending your decision to seek a strategic investor.
“Flowing from all the commentary monitored and the undue negativity that has attended this commentary, we feel you have not done enough to engage all your stakeholders, leading to perceptions that we don’t want associated with our brand. We believe that such negativity is not only injurious to our brand but also jeopardises the success of the investment we intend to make in these hotels
“Therefore, we are writing to inform you of our decision to withdraw our bid and discontinue our pursuit of this investment opportunity. Finally, in the interest of accountability and transparency, we consent to you releasing all or whatever parts of our bid documents for public scrutiny or publishing same if it should become necessary.
We wish you continuous success in your endeavours.”
Background
On 19 May 2024, the Social Security and National Insurance Trust (SSNIT) clarified that Rock City Hotel had made a legitimate bid for the four hotels and had emerged as the winner following the hotel’s presentation of the best and strongest technical and financial proposals of all those received by the Trust.
The opposition NDC MP for North Tongu, Samuel Okudzeto Ablakwa, in a recent post on his social media handles after a television discussion on Metro TV, announced that he had lodged a formal petition with the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate allegations surrounding the sale by SSNIT of six hotels to the Minister of Food and Agriculture, Bryan Acheampong.
In his petition, Okudzeto Ablakwa asserted that there are plans to sell a controlling 60% stake in six hotels owned by SSNIT to Rock City Hotel Ltd, a company reportedly owned by Dr Acheampong, who also serves as the MP for Abetifi.
The hotels under scrutiny in the petition are the Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort and the Trust Lodge Hotel.
Strategic partner
SSNIT, in a statement issued by the Trust management, said its “attention has been drawn to a discussion on Metro TV’s Good Morning Ghana programme on Friday 17 May 2024, which partly covered SSNIT’s strategic decision to divest 60% of its stake in the six hotels in its investment portfolio”.
“The management of SSNIT wishes to comment as follows: SSNIT responds to Honourable Samuel Okudzeto Ablakwa’s comments on the sale of hotels the Trust is seeking to partner with a strategic investor to raise capital to invest in the hotels, and also assist in their management.
“The primary objective of finding a strategic investor is to increase efficiency, profitability, shareholder value and the long-term sustainability of the SSNIT pension scheme. Accordingly, SSNIT 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.
“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 on 14 November 2018 and in the Ghanaian Times on 15 November 2018,” the SSNIT statement said.
“The advertisement was also published in an international magazine, The Economist, in its 5-11 January 2019 edition. 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.
“Following the selection of the independent transaction advisor to guide the selection of a strategic investor … 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. 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 said.
“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).
“Bids for Busua Beach Resort and the Trust Lodge were considered to be unsuccessful so they are no longer part of the hotels covered in this process. The process of getting a strategic investor is in its final stages and therefore not yet concluded.
“It was mentioned on the Metro TV discussion that the Commission on Human Rights and Administrative Justice (CHRAJ) has been petitioned to conduct a full-scale investigation into the sale of SSNIT hotels. Given the impending investigation by CHRAJ, the management of SSNIT will not comment further.
“SSNIT will co-operate 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.
Source: Asaaseradio.com
