A former CEO of the National Pensions Regulatory Authority (NPRA), Dr Daniel Seddoh, has raised serious concerns about the Social Security and National Insurance Trust’s (SSNIT) haste in its attempt to sell 60% of its shares in various top class hotels.
Speaking on the Super Morning Show on Wednesday, Dr Seddoh argued that the decision is premature and potentially detrimental to the interests of SSNIT contributors.
He further questioned the primary motives of the decision and its broader implications for the pension scheme.
“These property values would appreciate going into the future. You don’t sell something that would appreciate [in value]. Really, why would you sell a hotel business? If there is a business that you can run and make a profit, why would you be eager to sell?” Dr Seddoh asked.
He pointed out that well-managed hotels can generate significant profits and dividends, thus, making the rush to sell questionable.
“And in any case, you are running a pensions scheme, end-of-month contributors will make their contribution, won’t they? So the cash flow is there.
“So why the rush? What is chasing somebody? Is there a lot more we don’t know?” he inquired.
He called for a deeper examination of SSNIT’s financial situation, urging transparency about any cash flow difficulties that might be driving the sale.
“If they don’t genuinely have cash flow issues, then SSNIT should take its time. They should look for people with skill sets that can help those assets make the money and have funds to pay pensioners,” he advised.
Dr Seddoh also underscored the need for broader reforms within SSNIT.
According to him, the current management consistently takes decisions that may not be serving the best interests of contributors.
“We should look at the bigger issue of reforming SSNIT. This is because people sit in there and make decisions, and if the decisions cannot be right, then we need to look at the bigger issue. The reform is critical so that [SSNIT] can serve the purpose of a social scheme,” he noted.
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