Fair and sensible agreed price – IMANI boss

Franklin Cudjoe, President of IMANI Franklin Cudjoe, President of IMANI

The founder and president of IMANI Africa, Franklin Cudjoe, has entered the debate surrounding the sale of shares in hotels owned by the state Social Security and National Insurance Trust (SSNIT) to the Minister of Food and Agriculture, Bryan Acheampong’s Rock City Hotel. Limited.

In a post shared on Tuesday, May 21, 2024, Franklin Cudjoe indicated his support for SSNIT’s decision to sell shares in its hotels, arguing that it would lead to more efficient management.

He also stated that, based on his experience in land economics, he believes that the prices at which shares of the four hotels are sold to Rock City are justified.

“I think it is sensible for a state giant like SSNIT, which has been eternally abused by politicians past and present, to reduce its real estate business, which has never been profitable.

“Similarly, SSNIT should seek private sector participation (co-investment) in its wholly owned hotels, which are not operating efficiently. This will not only free up some liquidity, but also limit the long reach of politicians in traditional businesses over which the SSNIT has control.

“That said, I will support any competitive divestment that brings more money, technology, skills and preserves Ghanaian governance. I consider the proposed investment plan and the agreed price for the four hotels to be fair. As you all know, I studied Earth Economics and asset valuation is at the core of the program,” she added.

However, the IMANI chief indicated that he would not invest in SSNIT hotels due to the associated risks.

“Speaking now as a rational valuer and investor, I would never have invested my money in those SSNIT hotels. But some investors dare. They see what others cannot. Maybe power,” he added.

Background:

The Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has alleged that six hotels belonging to SSNIT are being sold to the Minister of Food and Agriculture, Bryan Acheampong.

In a post shared on social media on Friday, May 17, 2024, the MP claimed that documents he had intercepted showed that negotiations to sell 60% of the shares in the six SSNIT hotels to the minister’s Rock City Hotel Limited are very advanced.

The North Tongu legislator stressed that the sale of state properties to government officials constitutes an abuse of power and should not be allowed.

He added: “The six SSNIT hotels being sold are: Labadi Beach Hotel, La Palm Royal Beach Hotel, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort and Trust Lodge Hotel.”

Ablakwa further revealed that he had asked the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate and stop the minister from acquiring the hotels.

He argued that the minister’s actions not only constitute an abuse of power but also suggest a lack of due process, procurement violations, cronyism, corruption and a violation of the Constitution of Ghana.

SSNIT has stated that it will sell 60% stake in the six hotels to Bryan Acheampong’s company because they submitted the best offer.

He also clarified that shares of four, not six, of his hotels are being sold to Rock City, adding that the shares of the hotels were advertised for all interested parties to bid.

Bryan Acheampong has maintained that “there is no default” as Ablakwa claims because although he owns Rock City, he is not involved in its management.

Read Franklin Cudjoe’s full post below:

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