Finance lecturer and Director at the Centre for Investment Advisory and Sustainable Finance, Prof. Lord Mensah, has raised significant concerns over the Social Security and National Insurance Trust's (SSNIT) decision to sell its shares in hotel assets to Rock City Group.
In a Facebook post, Prof. Mensah stated that attention should not be solely placed on the conflict of interest emanating from a minister of state involved in the process.
He questioned the business rationale behind the sale and the wisdom of divesting from a hotel asset that boasts a 90% occupancy rate.
He argued that SSNIT's board must prioritize the interests of its contributors, who are the actual owners of the fund, and provide a convincing business case for the sale.
"I think attention has been diverted from the core business question on the sale of SSNIT shares in the hotels to Rock City Group. Let's not place too much emphasis on the conflict of interest and the legalities of a sitting MP and a minister involved in the case.
"The question is 'Does it make business sense for SSNIT to offload its shares in a hotel asset recording a 90% occupancy rate?'. SSNIT must answer this question to the satisfaction of its contributors (fund owners)," he posted.
He also called for the establishment of a management-contributors forum to discuss SSNIT's future direction, as recommended by the International Labour Organization (ILO).
"We need a management-contributors forum to discuss the way forward for SSNIT as recommended in the ILO's report. 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 contributors' best interests.
— The Prof (@stigue2001) May 21, 2024
ID/MA
