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SSNIT boss defends sale of 60% shares of Labadi Beach and other hotels

The Director-General of the Social Security and National Investment Trust (SSNIT), Kofi Bosompem Osafo-Maafo, has defended the decision to sell 60% shares of four of its hotels to Rock City Hotel Limited, owned by the Minister for Food and Agriculture, Bryan Acheampong.

According to Osafo-Maafo, after extensive deliberation, SSNIT concluded that selling 60% shares was the only viable way to make the hotels profitable. The hotels in question include Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, and Ridge Royal Hotel.

He emphasized that management had exhausted all other options to ensure profitability, including establishing local management teams, which did not yield the desired results.

Osafo-Maafo highlighted that only Labadi Beach Resort had recently started paying dividends to the government.

“We’ve been through quite a lengthy process. We also tried having external management companies run the SSNIT hotels, which didn’t resolve the problem either. We are looking to resolve the issue with the introduction of a strategic investor,” he stated.

He further noted that while Labadi Beach Hotel has started paying dividends, it does not mean it is operating at full potential.

Osafo-Maafo argued that if one were to sell a car or a house, they would make efforts to improve its appearance and value. Similarly, selling a profitable business can be a strategic decision to maximize returns and reinvest elsewhere.

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