The Failure Of SSNIT Investments And Matters Arising

The Social Security and National Insurance Trust (SSNIT) since its establishment in 1972 has been actively involved in almost all sectors of the Ghanaian economy either through equity investments or wholly owned SSNIT Businesses. Amongst them include investments in the Transport Sector (eg.STC), Banking / Financial Sector (eg.SSB, TTB, Merchant Bank etc) and Housing Sector (eg.SSNIT Flats) just to mention a few.

Almost all of these investments which were under the direct control of the SSNIT Board and Management has either been sold off or collapsed with the money of SSNIT Contributors (Both Active & Retired) going down the drain. The question is; “Why did all these investments by SSNIT go down the drain?”

Information I'm gathering from my sources within SSNIT points to the fact that politics is a major contributory factor to the failure of all these investments by SSNIT. Let me start with the Banking Sector. We all remember the Social Security Bank (SSB) which was sold to Societe General (SG) of France. The reason why this transaction took place is that, SSB has loaned money to a lot of Politicians and Businessmen who are politically connected for which they failed to pay back because of political expediency. The resultant was Bad Debt in the books of SSB creating liquidity crisis.

The Bank belonged to SSNIT and by inference Government and so the lack of will to pursue these debtors on the part of Managers of the Bank was not there for obvious reasons. The Bank was sinking due to politically connected bad debt and so the best way out was for SSNIT to sell the Bank. This same fate was suffered by The Trust Bank (TTB), another wholly owned Bank of SSNIT which was sold to Ecobank Gh. Ltd with SSNIT maintaining a minority share. Merchant Bank Gh. Ltd, another Bank where SSNIT had majority stake also went through the same fate. According to my source within SSNIT, the Board found it necessary to put these banks in private hands and earn some dividend instead of owning and managing it without any returns due to politics and mismanagement.

State Transport Company (STC), another once viable and thriving transport business for which SSNIT has majority stake is now on its knees. Mismanagement and politicking has made the once vibrant STC to be a pale shadow of itself today. My sources within SSNIT have even forgotten the last time STC paid any dividend to SSNIT but SSNIT continued to pump hard earned Contributors money into STC to pay Employees salaries including that non-performing management members and emoluments of redundant Board members.

This is because Government doesn't want STC to collapse due to the job losses and political consequences that will follow and so it has been forcing SSNIT to keep STC afloat to the detriment of SSNIT Contributors who earns nothing from their investment into STC. Will any private business minded results oriented person do this? The answer is obvious.

What happened to SSNIT Flats? There are numerous Estate Managers within this Country who could have managed the SSNIT Flats to bring in the much needed revenue into the coffers of SSNIT to the benefit of Pensioners. Because of mismanagement and political gymnastics, SSNIT Flats as I speak today have been sold off. Surprisingly, these Politicians and Business people who have amassed their wealth out of the stealing of pension funds are the same people who bought these flats.

SSNIT Management continues to trumpet that our pension has direct correlation with our salaries and so the higher your salary, the higher your contribution and by inference your pension. This is partly true but I can also confidently say that if SSNIT had been prudent and efficient with the management of these contributions by Workers no matter how big / small, devoid of politics, minimum pension in Ghana today should not have been less than GH¢500.00.

Today, I can confidently say that there are a number of Politicians (Both NPP & NDC) as well as rich politically connected Businessmen who has amassed their wealth out of the naked stealing of pension funds belonging to hardworking Ghanaian Workers, both Public and Private whiles Pensioners continue to struggle for their daily survival, sometimes leading to their untimely / pre-mature death.

Politicians continue to polarize our Nation so that they can profit from it and as a people, we have refused to see through this. So far as we remain divided along political lines and not come together as one force to change our systems & destiny as a Nation, the Politicians & politically connected Businessmen together with their families & Cronies will continue to smile to the Banks whiles we will continue to struggle on a daily basis to even put food on our tables.

Unity as a Nation, Unity as Organized Labour, devoid of politics is key in causing the needed change in our pensions system as well as our Nation Ghana to the benefit of all.

Let's rise up People, for Pensions is our Right and Responsibility!! Long Live Workers of Ghana!! Long Live the Republic of Ghana!! I thank you all.

BADU-BOATENG ERNEST
DEPT. OF CLINICAL MICROBIOLOGY
CLINICAL PARASITOLOGY UNIT
P. O. BOX 1934
KATH - KUMASI.
+233244567332 / +233269517126