Finance lecturer and director of the Centre for Investment Advice and Sustainable Finance, Professor Lord Mensa, has expressed great concern over the decision of the Social Security and National Insurance Trust (SSNIT) to sell its stake in hotel assets to Rock City Group.
In a Facebook post, Professor Mensa said the focus should not just be on conflicts of interest arising from the Ministers of State involved in the process.
He questioned the business rationale behind the sale and the wisdom of exiting a hotel asset that boasts a 90 percent occupancy rate.
He argued that the SSNIT board must prioritise the interests of its contributors, who are the actual owners of the fund, and provide a compelling business justification for the sale.
“I think it has diverted attention from the core business issue of the sale of SSNIT’s hotel shares to Rock City Group. Let’s not focus too much on the conflicts of interest and legal issues of the sitting MPs and ministers involved in this case.”
“The question is: does it make business sense for SSNIT to sell shares in hotel assets which have 90% occupancy rates? SSNIT must answer this question to the satisfaction of its contributors (fund owners),” he posted.
He also called for the establishment of a forum of management and contributors to discuss the future direction of SSNIT, in line with recommendations of the International Labour Organisation (ILO).
“As recommended in the ILO report, we need a forum of management and donors to discuss the future direction of SSNIT. The board cannot continue to make decisions and expose the fund to political risk,” he added.
The SSNIT board is currently under scrutiny for its decision-making processes, with calls for greater accountability and alignment with the best interests of contributors.
— Professor (@stigue2001) May 21, 2024
ID/MA