Story: Atta Kwaku Boadi 

As part of Today Newspaper’s public education on governance in the public sector, the paper  on its front page lead story headlined, “ Governance In The Public Sector…NPRA on Focus” , on  Monday, June 23, 2024  noted that  many Ghanaians were not aware who the regulator of Social Security  and National Insurance Trust (SSNIT)  was. 

The paper found it notable that SSNIT had been in the public space with controversies surrounding the proposed sale of some of SSNIT’s hotel assets to a current Minister of State in the Akufo-Addo administration. The regulator, Today Newspaper  found out  has authority to prevent asset sales and ensure the protection of pension funds including what is managed by SSNIT. 

The paper  drew the attention of the general public to the fact that the National Pensions Regulatory Authority (NPRA) is the regulator that SSNIT reports to.

The NPRA,  Today Newspaper  noted,   “…has authority to prevent asset sales and ensure the protection of pension funds including what is managed by SSNIT.”

Per its act, the National Pensions Act 2008, (Act 766) is among other things “…to regulate and monitor the operations of the three-tier pension scheme and ensure effective administration of all pensions in the country.”  

Its functions include the following which may have prompted NPRA to pay attention to the concerns raised by the public about the sale of hotel investments made by SSNIT:

“Issue guidelines for the investment of pension funds; approve, regulate and monitor trustees, pension fund managers, custodians and other institutions that deal with pensions as the Authority may determine; establish standards, rules and guidelines for the management of pension funds under this Act; regulate and monitor the implementation of the Basic National Social Security Scheme and sensitize the public on matters related to the various pension schemes.

Others are; receive and investigate complaints of impropriety in respect of the management of pension schemes; receive, and investigate grievances from pensioners and provide for redress and advise government on the general welfare of pensioners.

The rest are; advise government on the overall policy on pensions in the country; request information from any employer, trustee, pension fund manager or custodian, any other person or institution on matters related to retirement benefits; charge and collect fees as the Authority may determine; impose administrative sanctions or fines; and perform any other functions that are ancillary to the object of the Authority.”

The Today Newspaper was  therefore  not surprised that after its publication, the NPRA on Friday, June 28, 2024 in a letter  to SSNIT signed by the Chief Executive Officer of the Authority, Mr  John Kwaning  Mbroh  directed SSNIT to suspend its ongoing negotiations with Rock City over the sale of its  four hotels.

SSNIT is currently engaging Rock City Limited as the Strategic Investor in the sale of its four hotels namely Labadi Beach Hotel, La Palm Royal Beach Hotel, Elmina Beach Resort and Ridge Royal Hotel.

The NPRA in the  said letter indicated that “As you may be aware, section 67 (2) of the [National Pensions] Act requires us to issue relevant guidelines to guide your investment decisions.”

“In furtherance of this requirement, you are hereby directed by the Board of the Authority to suspend all the processes seeking to engage Rock City Hotel as the Strategic Investor in a matter of the sale of the above hotels.”

The  NPRA  is governed  by a  Board  comprising  Chairman, nine (9) non-executive members  and one (1)  executive member (the  Chief Executive Officer of the Authority) “In furtherance of this requirement, you are hereby directed by the Board of the Authority to suspend all the processes seeking to engage Rock City Hotel as the Strategic Investor in a matter of the sale of the above hotels.”

Section 8 of the National Pensions Act, 2008 (Act 766), specifies a Governing Board of the Authority to consist of representatives of relevant institutions and stakeholders in the Ghanaian Pensions Industry.

Institutions represented are the Bank of Ghana, Securities and Exchange Commission, Ministry of Finance and the Ministry of Justice and Attorney-General’s Department.

Associations represented are the Trades Union Congress (Organized Labour), Ghana Employers Association and the National Pensioners Association.

It is important to know that, the Today Newspaper has for the past several months been investigating and doing research on governance in the public sector, particularly the financial regulatory section.  The paper has  made contact with the Securities & Exchange Commission (SEC), Bank of Ghana (BoG), National Insurance Commission (NIC), NPRA and others.  Today Newspaper has also   sent questionnaires to the heads of these regulatory agencies.  Some of them are resisting the attempts to pull them into the public light but   the paper  will continue to publish the names and photographs of the directors of state institutions and follow up to promote accountability.