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Ablakwa urges SSNIT to adopt Labadi Beach Hotel’s turnaround strategy for troubled assets

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The North Tongu MP, Samuel Okudzeto Ablakwa, has advised the Social Security and National Insurance Trust (SSNIT) to adopt the turnaround strategy that saved Labadi Beach Hotel years ago to rescue its other struggling hotels.

According to him, the current issues with SSNIT-owned hotels like La Palm Royal Beach and Elmina Beach Resort, which were once thriving, are due to poor management.

Speaking on PM Express on JoyNews, Mr Ablakwa, who strongly opposes SSNIT’s plan to sell stakes in its hotels as a strategy to raise capital, argued that selling is not in the state’s best interest.

“So Labadi Beach Hotel was struggling about some 13-14 years ago, then a wise board decision was taken at the SSNIT level that let’s bring in new management. They brought in Liberty from South Africa. They had an expert, a Dutch manager and signed a 10-year contract.

“Then they had strong local content for the locals who understudy this international best practice company and then after 10 years, the Ghanaians took over.

“It’s almost four years or five years now [since the Ghanaians took over] and they are even doing better than when the experts were there,” the North Tongu MP said on Tuesday.

He indicated that Labadi Beach Hotel is poised to pay more than the GH¢25 million dividends it paid to the government in 2023.

He suggested that if SSNIT is concerned about its investments due to the losses recorded by some of its hotels, it should adopt the same model used for Labadi Beach Hotel instead of selling its majority stake to Rock City, a “loss-making hotel.”

“Labadi Beach Hotel has given you a classic example of the intervention that you need to make, the medicine that is required. So selling, and divesting yourself of 60% shares cannot be an option. It cannot be the best consideration in the circumstance,” Mr Ablakwa said.

“Let us adopt a different leadership paradigm. I’ve already told you about what happened in the case of Labadee which has served us well, which is yielding fruit,” he further advocated.

Background

In May, Mr Ablakwa lodged a formal petition with the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate allegations surrounding the sale of six hotels.

The hotels under scrutiny in the petition include Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort, and the Trust Lodge Hotel.

Mr Ablakwa’s petition to CHRAJ seeks an investigation into various allegations, including conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft.

Mr Ablakwa in his petition highlights what he views as a violation of constitutional provisions, citing Articles 78(3) and 98(2) of the 1992 Constitution.

However, SSNIT denied any foul play in its decision to sell a 60% stake in its hotels to Rock City Hotel owned by the Food and Agriculture Minister, Dr Bryan Acheampong.

According to SSNIT, this is a strategy to partner with an investor to raise capital to invest in their hotels, and also assist in their management.

SSNIT assured it will submit itself to the investigation by CHRAJ following Mr Abalwka’s petition.

Backlash

However, the news of the hotels’ sale drew massive backlash from stakeholders and organised labour.

The General Secretary of the Ghana Federation of Labour (GFL) expressed disappointment in their representatives on the board overseeing the sale of the hotels.

According to Mr Koomson, the representatives should have provided the union with first-hand information about developments at the board level that were not in their favour.

Organised Labour called for a restructuring regarding the use of workers’ funds by SSNIT. They argued that recent actions and inaction of SSNIT have been unsatisfactory.

They followed up with a petition to the president to halt the sale of the hotels to Rock City Hotel.

In response, President Akufo-Addo directed the Employment and Labour Relations Minister, Ignatius Baffour Awuah to engage in discussions with labour leaders.

The president’s goal is to find a mutually acceptable solution to the dispute, ensuring that the interests of all stakeholders are considered.

Also, the Trade Union Congress (TUC) revealed that SSNIT had not yet decided on selling 60% of its shares in four of its hotels to anyone.

Interacting with the media after a closed-door meeting with the SSNIT board on Thursday, May 30, TUC’s Secretary-General Dr Anthony Yaw Baah, said that the Trust is still considering proposals.

Nonetheless, he reiterated the union’s non-negotiable position that the transaction must be cancelled for broader consultations.

Demonstration

However, these interventions and assurances have seemingly not been satisfactory for stakeholders.

On June 18, hundreds of demonstrators gathered at the Labadi Beach Hotel for the “Hands Off Our Hotels” demonstration.

The main objective of the protest was to exert pressure on government to immediately halt the proposed sale of a 60 per cent stake in the four prominent hotels.

Mr Ablakwa who led the protest argued that the sale of state-owned properties to government officials constitutes a clear abuse of power that should not be tolerated.

The group submitted a petition to the president urging him to call off the deal completely.

Way Forward

To prevent Ministers of State and government officials from purchasing state assets in the future, Mr Ablawka assured the public that he is working round the clock to introduce a private members bill to prevent legislators and government officials from buying state assets.

According to him, these public officials are elected to manage state assets; therefore, they should not be the very individuals benefiting from such sales.

The legislator added that although the current law prevents these officials from engaging in conflicts of interest, many legislators still find loopholes.

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Politics

Bawumia- “Mahama’s Economic Record Bad”

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The presidential candidate of the New Patriotic Party (NPP), Vice President Dr. Mahamudu Bawumia, has openly criticised former President John Dramani Mahama’s economic management, describing it as the worst among Ghana’s Fourth Republic leaders.

According to him, during Mr. Mahama’s tenure, the economy experienced substantial setbacks across multiple sectors, marked by soaring inflation, sluggish growth, and increasing unemployment.

Speaking at the Ghana CEO Presidential Gala in Accra last Thursday, Dr. Bawumia asserted that his criticism was based on hard economic data rather than partisan views.

He contrasted this with what he described as Ghana’s improved economic trajectory under NPP leadership, asserting that Mr. Mahama’s tenure represented a “decisive failure in economic stewardship.”

Dr. Bawumia stressed that his analysis was intended to highlight the need for sound economic management and that his remarks were meant to shed light on measurable outcomes of Mr. Mahama’s policies, which he said weakened the country’s economic resilience.

The NPP presidential candidate expressed his commitment to building on the progress achieved under the Akufo-Addo administration.

He underscored the importance of data-driven policies and positioned himself as the candidate most capable of navigating Ghana through future economic challenges.

“Despite the impact of global economic challenges, it might surprise some, including the former president himself, that his administration ranks the lowest in economic performance among all Fourth Republic leaders,” Dr. Bawumia reiterated.

He continued, “Yet, he speaks about our economic performance as though his was superior.”

Business Development

Dr. Bawumia also used the opportunity to reaffirm his commitment to strengthening business development in the country, stressing that resilient businesses are foundational to a thriving economy.

He praised the role of the private sector in creating jobs, driving innovation, and fostering sustainable growth.

The NPP flagbearer detailed policies introduced by the current administration to support Ghanaian businesses, including initiatives aimed at enhancing entrepreneurship, expanding access to credit, and advancing digitalisation.

According to Dr. Bawumia, these steps are critical to building a competitive, innovative, and resilient business sector.

He promised that, if elected, he would continue to prioritise business growth in order to ensure the Ghanaian economy remains vibrant and competitive on a global scale.

“Ladies and gentlemen, as you may know, Bawumia means business! From banking to vice presidency, my commitment to business development has been unwavering.

“Strong businesses lead to a strong economy—show me a prosperous nation, and I’ll show you resilient businesses behind it,” he concluded.

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NPP, NDC have mismanaged Ghana – GUM

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The Ghana Union Movement (GUM) has criticised the New Patriotic Party (NPP), and the National Democratic Congress (NDC) for “mismanaging the country” and supervising the sale of state-owned businesses bequeathed by previous governments.

The Party said the sale of state-owned factories to private individuals and failure to revive defunct state enterprises largely accounted for the growing youth employment situation that had bedeviled the country.

These were contained in a news release issued by the Party’s founder and leader, Reverend Christian Kwabena Andrews, and shared with the Ghana News Agency.

The GUM urged the youth to “be concerned about their future” and vote to break the duopoly enjoyed by the NPP and NDC for decades.

“Embracing both NDC and NPP as a party is just endorsement of the continuity of the Ghanaian predicament. Ghanaian youth must rise to vote massively against these parties, because they were the source of our problems today,” it said.

The GUM said the slow pace of development since the commencement of the Fourth Republic in 1992 justified the call for the “total overhaul” of the 1992 Constitution “considering the mess caused by both NDC and NPP government respectively.”

The Party proposed the adoption of what it termed as “Hybrid African Democracy” which it said was suitable governance model for the country.

“The current model was copied line, hook, and sinker from the West, where they have established and structured institutions to make their democracy work,” it said.

The GUM also called for downsizing of Parliament to reduce the cost of running the business of the House.

The Party said that salaries and benefits awarded to 275 Members of Parliament as well as Article 75 Office Holders “drain the national purse than building it.”

“We urge the public to vote for the Ghana Union Movement for a reliable, better Ghana with the Ghanaian youth as its core,” the Party said.

The GUM caused a stir when it placed third in the 2020 presidential election, beating the traditional Convention People’s Party, People’s National Convention, and the Progressive People’s Party.

The party garnered 105,548 votes, representing 0.805 per cent of the total ballots cast.

Rev. Andrews has indicated that the Party would build on its achievements in 2020 and affect the 2024 presidential and parliamentary elections.

The GUM has promised to establish factories in every region and operate a free port to boost economic activities and improve the living conditions of the people.

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Bagbin Addresses Media Today

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In a significant development, Ghana’s Parliament Speaker, Alban Sumana Kingsford Bagbin is set to address the media on Wednesday, November 6, 2024.

The press conference, scheduled for 2:00 pm at the Justice D.F. Annan Auditorium, Job 600, Parliament House, aims to tackle critical issues affecting Ghana’s parliamentary democracy.

Recent Developments

Alban Bagbin’s address comes amidst significant political developments in Ghana.

As Speaker, he has played a pivotal role in shaping the country’s legislative agenda.

His leadership has been marked by efforts to strengthen parliamentary oversight and promote transparency.

The engagement seeks to provide a platform for the media to discuss pressing concerns impacting Ghana’s democratic growth.

The Speaker, Alban Bagbin, is expected to shed light on recent events that have shaped the country’s political landscape.

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