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SSNIT-Rock City saga: A ‘struggling’ Labadi Beach Hotel could make profit of GH¢158m in 2023; stop the sale now — Ablakwa provides more 'evidence'

Headlines SSNIT-Rock City saga: A struggling Labadi Beach Hotel could make profit of GH158m in 2023; stop the sale now —Ablakwa provides more 'evidence'
THU, 30 MAY 2024 LISTEN

North Tongu Member of Parliament, Samuel Okudzeto Ablakwa, has intensified his opposition to the planned sale of state-owned hotels, presenting compelling financial evidence to argue against the divestiture.

The controversy follows Social Security and National Insurance Trust (SSNIT) plans to sell its interests in four hotels, including Labadi Beach Hotel, to Rock City Hotels Limited, a company owned by the Minister of Agriculture, Bryan Acheampong.

Ablakwa, in his latest publication, has shared financial and management statements from Labadi Beach Hotel covering a decade.

He highlighted the hotel's significant profits and high turnover, challenging the justification for its sale.

Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel, and Elmina Beach Resort, are part of the divestment plan.

Ablakwa cited annual reports by Deloitte to support his stance that Labadi Beach Hotel's profits could sustain the other hotels if they were indeed struggling.

“The financials reveal that Labadi Beach Hotel has cash reserves in five bank accounts amounting to an impressive GHS54,855,795.00,” he disclosed.

He noted that according to the 2022 Deloitte financial statement, Labadi Beach Hotel had a turnover of GHS120,438,655, which increased to GHS188,076,649.00 in the 2023 management account.

“The facility in 2022 posted a gross profit of GHS70,734,099.00 — a figure which astonishingly more than doubled by 2023 to GHS158,490,448.00,” Ablakwa emphasized.

Ablakwa also highlighted the hotel's contributions to government revenue, stating, “In addition to dividends, Labadi Beach Hotel over the last five years has paid a significant GHS20,318,232 in taxes to the government.”

Despite these impressive financial figures, SSNIT is moving forward with plans to sell the hotel.

Ablakwa's evidence raises questions about the rationale behind selling such a profitable state asset.

Meanwhile, Bryan Acheampong has defended the pending purchase, denying any irregularities in the agreement.

He acknowledged his role as a director of Rock City but claimed he is not involved in its daily operations.

Below is Ablakwa’s 'evidence':

Gideon Afful Amoako
Gideon Afful Amoako

News ReporterPage: GideonAffulAmoako

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