The
Social
Security
and
National
Investment
Trust
(SSNIT)
has
defended
the
decision
to
sell
60%
of
its
shares
in
four
hotels
to
a
private
investor,
describing
the
move
as
the
only
viable
option
to
revive
the
fortunes
of
the
hotels.
The
hotels
include
Labadi
Beach
Hotel,
La
Palm
Royal
Beach
Resort,
Elmina
Beach
Resort
and
Ridge
Royal
Hotel.
In
a
media
address
in
Accra
on
Monday,
SSNIT’s
Director
General
Kofi
Bosompem
Osafo-Maafo
explained
that
due
diligence
was
done
and
changing
management
was
not
considered
feasible
due
to
the
continuous
losses
the
hotels
had
been
accruing.
“We’ve
been
through
quite
a
lengthy
process
to
do
so.
Bear
in
mind,
we’ve
also
tried
having
external
management
companies
running
the
SSNIT
hotels
and
that
hasn’t
resolved
the
problem
either.
“So,
for
us,
we
look
at
it
twofold,
that
we
are
looking
to
resolve
a
problem
and
do
so
with
the
introduction
of
a
strategic
investor
and
we
outlined
the
reasons
there.”
“Consistent
losses
by
almost
all
of
our
hotels.
I
know
you
are
aware
that
Labadi
doesn’t
make
a
profit,
but
the
returns
are
below
[par].
They
haven’t
paid
us
any
dividends
with
the
exception
of
Labadi.
Labadi
Beach
Resort
only
started
paying
dividends
for
the
last
2
years.
They
haven’t
from
inception,”
he
stated.
Despite
its
profitability,
Osafo-Maafo
also
justified
the
inclusion
of
Labadi
Beach
Hotel
in
the
sale.
He
stated
that
this
decision
was
guided
by
SSNIT’s
objective
to
optimise
overall
returns,
as
the
current
profits
from
the
hotel
were
considered
inadequate.
“We
want
to
maximize
what
we
get
out
of
it
and
the
question
that
I
asked
somebody
the
other
day
is
if
you
were
selling
your
car
or
even
your
house,
if
you
were
selling
your
house,
you’d
make
an
attempt
to
actually
paint
it.
“You
wouldn’t
wait
for
your
car
to
be
put
on
stones
and
then
say,
now
this
is
the
time
to
sell
it.
You
make
it
look
good.
There’s
no
reason
why
if
a
business
is
doing
well
and
we
seek
to
maximise
capital
from
its
to
invest
elsewhere,
we
shouldn’t
do
so.”
“The
reason
is
simple.
Returns
are
lower
than
we
believe
they
should
be,
but
also
cash
always
has
alternative
uses.
So
why
not?
There’s
a
good
investment
rationale
for
that,”
he
stated.
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