SSNIT Hotels: Your son’s bid didn’t meet our criteria – Osafo-Maafo replies Freddie Blay

The
Director-General
of
the
Social
Security
and
National
Insurance
Trust
(SSNIT),
Kofi
Bosompem
Osafo-Maafo
has
rejected
claims
by
the
former
National
Chairman
of
the
New
Patriotic
Party
(NPP),
Freddie
Blay
that
a
$200
million
bid
by
his
son
to
purchase
60
per
cent
stake
in
its
hotels
was
ignored.

Addressing
the
press
on
Monday,
July
8,
Mr
Osafo-Maafo
clarified
that
the
proposal
by
Spartan
Ives
did
not
make
it
through
the
first
stage
of
the
bid
process
adding
that
the
envelope
was
never
opened.

“The
claim
that
has
been
made
by
Mr
Freddy
Blay
that
his
son’s
company,
Spartan
Ives
bid
150
to
200
million
dollars
and
SSNIT
turned
it
down
cannot
be
substantiated.

“For
the
process,
you
first
go
through
an
evaluation
panel
and
score.
Once
scored
and
you
get
past
the
pass
mark
we
then
assess
your
financial
proposal.
That
is
the
process
and
that
is
what
the
law
requires
us
to
do.

“We
did
exactly
that.
Spartan
Ives
did
not
get
past
the
evaluation
stage.
Their
technical
proposal
was
weak
and
they
scored
below
the
required
50%
so
their
financial
proposal
was
not
even
assessed.
The
envelope
was
not
even
opened.
It
was
returned
to
them.
That
is
what
the
law
requires
us
to
do.

“So
to
say
that
SSNIT
received
an
offer
of
150
to
200
million
dollars
and
turned
it
down
is
not
accurate
because
the
offer
was
never
made,
the
offer
was
never
opened,”
he
stressed.

Mr
Blay
confirmed
in
an
interview
that
his
34-year-old
son,
Kwaw
Blay,
bid
for
the
purchase
of
SSNIT
hotels.

According
to
Mr
Blay,
his
son’s
company,
Spartan
Ives
Limited,
offered
up
to
$200
million
to
acquire
the
60
percent
stake
in
the
hotels,
but
he
was
denied
the
opportunity
by
the
Trust.

Meanwhile,
Mr
Osafo-Maafo
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.

Mr
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.