TIG Post

Tag: Rock City

  • Ghana be ready for the consequences – NPP’s Ahiagbah over SSNIT sales termination

    Ghana be ready for the consequences – NPP’s Ahiagbah over SSNIT sales termination

    Communications Director of the New Patriotic Party (NPP), Richard Ahiagbah, has raised concerns about the long-term implications following the termination of the sale of SSNIT’s 60 percent shares in four hotels.

    On July 12, SSNIT announced the cancellation of the sale of its four hotels to Rock City Hotel, which also declared it would not purchase the SSNIT shares. This decision followed threats from Organised Labour to launch a nationwide strike on Monday, July 12.

    In a post on X (formerly Twitter), Ahiagbah recognised the impact of Organised Labour and advocates, expressing sympathy for the workers’ concerns. However, he warned against obstructing a legitimate corporate decision, stressing the potential damage to corporate governance, market confidence, and overall certainty.

    Ahiagbah urged careful consideration of the action’s implications, fearing it could have extensive consequences.

    “The recent halt of SSNIT’s attempt to sell 60% of its shares in the five hotels is a testament to the power of organized labour and advocates. Their unwavering dedication to the sale has prevailed, sending a clear message.

    “However, while this may seem like a victory worth celebrating, we must also consider the precedent we have set. Are we opening the door to future interference in public offerings based on political affiliations?

    “This could harm corporate governance, market confidence, and overall certainty. Just as we are bound to respect a referee’s decision in a football game, we must also abide by the outcomes of democratic processes, even if they don’t align with our preferences.

    “While I empathise with the workers’ concerns, we must also consider the implications of impeding a legitimate corporate decision. We must deeply reflect on the potential long-term consequences of this precedent.”

  • Negativity surrounding SSNIT jeopardizes our investment – Rock City

    Negativity surrounding SSNIT jeopardizes our investment – Rock City

    Leading hospitality firm, Rock City, has retracted its offer to acquire a 60% stake in four hotels owned by SSNIT, citing the “undue negativity” surrounding the deal.

    In a letter to the SSNIT Director General dated July 12, Rock City mentioned the ongoing media discussions and the perceived lack of stakeholder engagement, which has fostered perceptions that “we don’t want to be associated with our brand.”

    “Such negativity is not only injurious to our brand but also jeopardizes the success of the investment we intend to make in these hotels,” the statement reads in part.

    Rock City had emerged as the preferred bidder after a competitive process involving 15 other organizations.

    However, organized labor unions have fiercely rejected the sale, calling it “flawed” and “not in the interest of Ghanaian workers”.

    This prompted threats of an indefinite nationwide strike from July 15.

    Read full statement below:

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  • Rock City withdraws purchase bid, citing too much “negativity” surrounding transaction

    Rock City withdraws purchase bid, citing too much “negativity” surrounding transaction

    Leading hospitality firm Rock City has withdrawn its bid to purchase 60% of shares in four SSNIT-owned hotels, citing the “undue negativity” surrounding the transaction.

    In a letter addressed to the SSNIT Director General dated July 12, Rock City said it took note of ongoing media discussions and a perceived lack of stakeholder engagement, which has created the perception that “we don’t want to be associated with our brand.”

    “Such negativity is not only injurious to our brand but also jeopardises the success of the investment we intend to make in these hotels,” the statement reads in part.

    Rock City had emerged as the preferred bidder after a competitive process involving 15 other organisations.

    However, organised labour unions have fiercely rejected the sale, calling it “flawed” and “not in the interest of Ghanaian workers.”

    This prompted threats of an indefinite nationwide strike on July 15.

  • BREAKING: Byran Acheampong’s Rock City withdraws from buying SSNIT Hotels

    BREAKING: Byran Acheampong’s Rock City withdraws from buying SSNIT Hotels

    Rock City Hotel has pulled out of its bid to acquire a 60 percent stake in four hotels owned by the Social Security and National Insurance Trust (SSNIT).

    The hotels in question are La Palm Beach Hotel, Labadi Beach Hotel, Royal Ridge Hotel, and Elmina Beach Hotel.

    This decision follows Organised Labour’s threat to go on strike on Monday, July 15, if SSNIT proceeds with the sale to Rock City Hotel, which is owned by Agriculture Minister Bryan Acheampong.

    In a letter to SSNIT Director-General Kofi Osafo-Maafo, Rock City Hotel expressed disappointment over the lack of stakeholder engagement, which they believe caused negative perceptions about their bid.

    Consequently, they have chosen to withdraw from pursuing this investment opportunity in the hotels.

    In the interest of transparency and accountability, Rock City Hotel has agreed to the public release of all or part of their bid documents, if necessary.

    Read full statement below:

  • Rock City went back to GRA to declare profit after my exposè – Okudzeto

    Rock City went back to GRA to declare profit after my exposè – Okudzeto

    Samuel Okudzeto Ablakwa, the Member of Parliament for North Tongu, has presented compelling evidence challenging the financial integrity of Rock City Hotel.

    The MP’s exposé suggests that Rock City Hotel, owned by Bryan Acheampong, Minister for Food and Agriculture, initially reported operating losses but later amended their financial records to declare a profit after Ablakwa’s revelations.

    Mr Ablakwa’s disclosure comes amid his strong opposition to the Social Security and National Insurance Trust’s (SSNIT) decision to sell 60 percent of its shares in four hotels, including the more profitable Labadi Beach Hotel, to Rock City Hotel.

    Mr Ablakwa substantiated his claims with documents indicating Rock City Hotel’s financial struggles, directly contradicting Acheampong’s assertions that his hotel was not operating at a loss.

    “On March 12, 2021, Rock City Hotel posted returns stating they would incur losses for the year,” Ablakwa revealed during an interview on Accra-based Metro TV.

    He further alleged that the hotel failed to file tax returns with the Ghana Revenue Authority (GRA) for the entire year of 2022.

    According to Mr Ablakwa, it was only after his exposé brought these financial discrepancies to light that Rock City Hotel rushed to rectify their tax obligations.

    Mr Ablakwa detailed how, on March 9, 2023, Rock City Hotel reported a debit adjustment for two withholding taxes amounting to GH¢20,782. However, no tax filings were made for the entire year of 2022. He questioned how the hotel managed to obtain a tax clearance certificate to participate in the SSNIT bid without filing taxes for two years.

    In response to Ablakwa’s exposé, Rock City Hotel went to the GRA on May 23, 2024, and declared profits for 2022, a significant departure from their initial loss declaration.

    “After my exposé, they went to the GRA and declared profits instead of losses, resulting in a tax liability of GH¢395,000. They were also fined GH¢4,390 for their late filings,” Ablakwa elaborated.

    Mr Ablakwa emphasized that Rock City Hotel’s actions were reactionary to his exposé, highlighting the company’s sudden shift in financial reporting.

    He noted that the hotel only filed its taxes on April 20, 2024, after the first quarter, indicating anticipated losses for that year. This raised significant concerns about their business practices.

    The MP further criticized the SSNIT purchase decision, arguing that Labadi Beach Hotel, one of the hotels involved in the transaction, was notably more profitable. “Labadi Beach Hotel reported profits of one hundred and fifty-eight million, yet Rock City Hotel, which claimed it would make no profits, is now poised to buy it. This is inconsistent and troubling,” he stated.

    @nurudeen.m..yakub Evidence based Oversight Responsibility. Hon SOA has putting out the facts and figures from GRA that indeed Rock City declared a loss in 2023. #handsoffourhotelsdemo #yppppppppppppppppppppppp #trending #24hourseconomy @Sammy Gyamfi @Samuel Ablakwa Okudzeto @Beatrice Annan @Hajia Safia Iddrisu @King Poborsky TV @AnnanPerryArhin ♬ original sound – Nurudeen M. Yakubu Yalley
  • SSNIT’s agreement to sell 4 hotels to Rock City below its valuation

    SSNIT’s agreement to sell 4 hotels to Rock City below its valuation

    North Tongu Member of Parliament, Samuel Okudzeto Ablakwa, has released additional documents to support his argument that the proposed sale of four state-owned hotels to a current cabinet minister was unfavorable.

    Ablakwa, in his latest statement regarding the matter, shared an internal memorandum exchanged between the state-owned pension organization, SSNIT, and Rock City Hotels Limited, owned by Agriculture Minister Bryan Acheampong.

    The document titled “SSNIT-ROCK CITY GROUP SALE OF STAKE IN SSNIT HOTELS NEGOTIATION” gave an agreed position of sale for each of the hotels in question – i.e. Labadi Beach Hotel, La Palm Royal, Ridge Royal and Elmina Beach Resort.

    According to SSNIT’s assessment, the total value of the four hotels amounted to more than US$121 million, whereas Rock City’s proposal was for US$61.2 million.

    In an extensive post discussing the transaction shared on various social media channels on June 3rd, Ablakwa stated:

    “The SSNIT memos in my possession reveal that SSNIT’s objective expectations based on valuation reports of 60% stake in the 4 hotels (Labadi, La Palm, Ridge Royal & Elmina) ranges from a minimum value of US$80,406,630.00 to a maximum of US$121,315,643.00.

    “From the intercepted memos, Hon. Bryan Acheampong’s Rock City offer fell far below the minimum value of the 4 hotels. Hon. Bryan Acheampong’s below par bid was US$61,200,000.00,” he added.

    He highlighted the considerable losses SSNIT would incur if they proceeded to accept the Rock City proposal.

    Ablakwa was the initial individual to disclose the intended sale of SSNIT’s shares in the mentioned hotels and has subsequently presented evidence to demonstrate that the agreement was detrimental to the state’s interests and, in particular, to pensioners.

    Additionally, he has lodged a complaint with CHRAJ to investigate potential conflicts of interest regarding the minister’s involvement with Rock City and his dual roles as a minister and Member of Parliament.

    Read Ablakwa’s full post below:

    Intercepted memos from SSNIT on Hon. Bryan Acheampong’s Rock City offer for the purchase of SSNIT’s hotels confirm that but for my timely intervention in exposing the deal, Ghanaian workers would have been terribly shortchanged as the transaction does not guarantee value for money.

    The SSNIT memos in my possession reveal that SSNIT’s objective expectations based on valuation reports of 60% stake in the 4 hotels (Labadi, La Palm, Ridge Royal & Elmina) ranges from a minimum value of US$80,406,630.00 to a maximum of US$121,315,643.00.

    From the intercepted memos, Hon. Bryan Acheampong’s Rock City offer fell far below the minimum value of the 4 hotels. Hon. Bryan Acheampong’s below par bid was US$61,200,000.00.

    Considering that SSNIT’s own minimum value based on expert advice was pegged at US$80,406,630.00, the Hon. Bryan Acheampong/Rock City offer did not meet this minimum threshold by as much as US$19,206,630.00.

    When compared to the upper limit, Hon. Bryan Acheampong’s offer fell short by a staggering US$60,115,643.00

    It is instructive to discover that whereas SSNIT’s minimum offer for La Palm Royal Hotel is US$37,897,200.00, Hon. Bryan Acheampong merely offered US$21,000,000.00 (a significant variance of US$16,897,200.00).

    In the case of Elmina Beach Resort, SSNIT was advised to go for a minimum of US$4,709,430.00, however, Hon. Bryan Acheampong offered a paltry US$2,400,000.00.

    Analysts are fascinated by how the Hon. Bryan Acheampong/Rock City bids for Labadi Beach Hotel and Ridge Royal were exactly the same figures for SSNIT’s minimum expectations, raising suspicions about possible insider dealings and a rigged process.

    These intercepted memos once again expose the deceptive and bogus claims by unpatriotic NPP propagandists and their surrogates that Hon. Bryan Acheampong offered a fair price and that his bid is the best for Ghana.

    The clearest indication yet that these hotels were just being opaquely packaged for cheap on the blind side of Ghanaians to satisfy an obscene state capture agenda.

    Our agitations must continue unabated, ahead of the June 18 demonstration, since President Akufo-Addo contemptuously refuses to instruct his marauding appointees to take their hands off our hotels.

    We shall not be silent and lose these strategic national assets like the way we were taken by surprise with Mr. Kwaw Worsemao Blay now claiming to own the Labadi Hotel beachfront.

    I shall be back with more.

  • Ablakwa implicates Hamdiya Ismaila in ‘shady’ sale of SSNIT hotels to Rock City

    Ablakwa implicates Hamdiya Ismaila in ‘shady’ sale of SSNIT hotels to Rock City

    In a recent post on X, Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has raised further concerns regarding the sale of hotels owned by the Social Security and National Insurance Trust (SSNIT) to Rock City Hotel, owned by the Minister for Food and Agriculture, Bryan Acheampong.

    Mr Ablakwa’s post highlighted the potential involvement of Hamdiya Ismaila, a Director of SEM Capital Advisors Ltd, in the transaction process.

    Mr Ablakwa questioned whether Ismaila, who previously served as General Manager at the Venture Capital Trust Fund, exerted undue influence during SEM Capital’s selection as Transaction Advisor in 2019, given her government position at the time.

    He also raised suspicions about the subsequent bid won by Rock City in 2022, suggesting a possible conflict of interest.

    He shared a letter from the Central Tender Review Committee in 2019, granting approval for SSNIT to engage SEM Capital as the recommended tenderer for consultancy services related to the divestiture of its hotels.

    Meanwhile, Mr Ablakwa’s petition to the Commission on Human Rights and Administrative Justice (CHRAJ) calls for an investigation into alleged conflict of interest, abuse of power, procurement breaches, and other irregularities surrounding the sale.

    SSNIT and Bryan Acheampong have denied any wrongdoing, asserting that Rock City submitted the best proposal for the acquisition of a 60% stake in the hotels.

    As the investigation unfolds, stakeholders await further developments to determine the outcome of the probe into the sale of SSNIT hotels to Rock City, amidst growing calls for accountability and adherence to due process.