Chairman of the Public Accounts Committee, James Klutse Avedzi, has expressed concern over the impact of non-paying companies on SSNIT's sustainability and solvency in the long run.
Accra, August 17, 2023 - The Social Security and National Insurance Trust (SSNIT) is grappling with financial concerns as ten out of the 45 unlisted companies it has invested in have not paid any dividends for the past ten years.
The investment value of these companies stands at GH¢150.30 million as of December 2020.
The disclosure was made during a Public Accounts Committee (PAC) meeting where the management of SSNIT, led by its Director-General, Dr. John Ofori-Tenkorang, appeared to respond to infractions highlighted in the 2021 Auditor-General's report.
Chairman of PAC, James Klutse Avedzi, expressed concern over the impact of these non-paying companies on SSNIT's sustainability and solvency in the long run.
He called on the management to assess the operations of these companies and take strategic decisions to safeguard the interest of the Trust.
Responding to the issue, Kofi Osafo-Maafo, Deputy Director-General in charge of Investment at SSNIT, assured that the Trust was working on initiatives for a turnaround in the operational performance of the defaulting companies over the longer term. He mentioned that the Trust was seeking strategic investors for Golden Beach Hotels (GBH) to improve its performance.
For Kumasi and Accra Abattoirs, Osafo-Maafo said they had been facing non-commercial pricing, leading to financial challenges. However, SSNIT was taking measures to dispose of some land to settle debts and improve the companies' financial performance.
Regarding CDH, SSNIT was looking forward to exiting the company after finding a buyer for its shares. For Bayport Financial Services, it was facing challenges in the financial sector but was hopeful of positive earnings in the future.
The case of Intercity STC Coaches Limited was described as a difficult situation due to high operating costs and pricing issues. SSNIT plans to assess the situation later this year and address indebtedness accordingly.
AWA, the Africa World Airlines, faced challenges due to operating with leased aircraft and internal governance issues. SSNIT expects these matters to be resolved, leading to the company paying dividends in 2024.
Finally, SSNIT is pursuing a diversification strategy with SIMNet, a service provider for the National Lottery Authority. They are working to renew their license and improve financial performance.
The Metro Mass Transit Company Limited remains a CSR investment with pricing challenges.
SSNIT is taking proactive measures to address the issues and safeguard the interests of contributors and beneficiaries.
Source :Tellusghana || Ewura Ama
