Rock City Hotel, the company at the centre of the controversial sale of the Social Security and National Insurance Trust’s (SSNIT’s) shares in 4 hotels, has withdrawn its bid for the purchase.
In a letter dated July 12, 2024 and addressed to the Director-General of SSNIT, Rock City Hotel said the negativity surrounding the deal “is not only injurious to our brand but also jeopardizes the success of the investment we intend to make in these hotels”.
The withdrawal comes on the back of a nationwide strike declared by Organized Labour.
Public opposition against the sale of 60 percent of SSNIT’s shares in 4 of its hotels grew last month after it emerged that Rock City Hotel, owned by Minister of Agric, Bryan Acheampong, won the bid to buy the hotels.
Labour had vehemently kicked against the deal and had joined a protest organised by an opposition Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, to register their displeasure.
They were later engaged by the presidency for talks on the matter.
But SSNIT insisted it had not done anything wrong and that the deal was in the interest of the nation.
The National Pensions Regulatory Authority (NPRA), on June 28, 2024, ordered a suspension of the sale pending its evaluation of the sale books.
It, however, emerged yesterday in Parliament that the NPRA has given SSNIT the go ahead to seal the transaction with Rock City Hotel.
The development angered organized labour, who convened a crunch meeting today, after which they declared an indefinite nationwide strike to force government to rescind the decision to sell their pension contributions’ investment to a company owned by a government official.
But hours after that declaration, Rock City Hotel informed SSNIT of its decision to withdraw from the deal.
The company said although it was happy to have beaten 15 other competitors to win the bid, it feels SSNIT did not do enough to engage stakeholders leading to negative perceptions surrounding the sale which it does not want to be associated with.
It, therefore, took the decision to withdraw its bid for the purchase.
“We feel you have not done enough to engage all your stakeholders, leading to perceptions that we don’t want associated with our brand,” excerpt of the letter said.
It also waived its privacy right for SSNIT to publish its bid documents for public scrutiny.
“In the interest of accountability and transparency, we consent to you releasing all or whatever parts of our bid documents for public scrutiny or publish same if it should become necessary”.
