Sale of SSNIT Hotels: Rock City did not demonstrate the financial capacity for the deal – Transaction Advisor

Member of Parliament for North Tongu, Okudzeto Ablakwa has insisted that SSNIT discriminated in choosing to sell four of its hotels to Rock City Hotel.

In a post shared via social media, he indicates that the transaction advisor kicked against choosing Rock City because the company was not solvent enough to pay the amount for the deal.

To him, this is a clear indication that the deal was given to Rock City not on merit but rather because of a conflict of interest.

He used the opportunity to berate Elizabeth Ohene who is said “wrote a few days ago (on June 26, 2024) dishonestly and blasphemously claiming this is such a clean transaction which she is willing to subject to investigations by God’s angels when she and her board were in possession of this terribly putrid May 24, 2024 report from her own Transaction Advisor”.

Read His Post Below

Newly obtained explosive documents on the sale of our SSNIT hotels reveal more damning evidence against Hon. Bryan Acheampong’s Rock City Hotel and SSNIT.

On the 24th of May, 2024, the Transaction Advisor, Dr. Sam Mensah of SEM Capital wrote to the SSNIT Board of Trustees on SEM’s professional analysis of the Rock City offer for the 4 SSNIT hotels. (The full memo is attached to this publication).

SEM Capital’s intercepted memo conveys the following damning verdict:

1) Rock City’s US$61.20million latest proposal offers an installment plan (an initial US$30.80million with the balance spread over 24 months) with no confirmation of availability of funds. Payment is based on the cash flows of Rock City with no credit enhancement from any bank.

2) There is no indication of ability to pay.

3) The arrangements for the transfer of the shares do not satisfy the objectives of SSNIT as contained in the TOR for this transaction. Transfer of the management and ownership will take 2 years.

4) The 2-year installment plan was not made available to all bidders. Other investors who submitted bids were not given an option to spread payments.

5) Rock City’s proposal does not include a bank guarantee.

6) Rock City does not have cash reserves to support the installment payments.

7) Rock City’s financials cannot support their installment proposal which will require periodic payments of US$7.8million (GHS109.7million).

8)Rock City’s proposal which SSNIT was entertaining did not meet the requirement to demonstrate the financial capacity to close the transaction.

9) Rock City’s proposal does not indicate the source of funding for the balance of the acquisition price.

It’s crystal clear from SEM Capital’s professional appraisal that SSNIT discriminated in favour of Hon. Bryan Acheampong’s Rock City. This is always a feature in conflict of interest transactions.

SEM Capital’s Memo badly exposes SSNIT Board Chair, Hon. Elizabeth Ohene who wrote a few days ago (on June 26, 2024) dishonestly and blasphemously claiming this is such a clean transaction which she is willing to subject to investigations by God’s angels when she and her board were in possession of this terribly putrid May 24, 2024 report from her own Transaction Advisor.

This exceedingly scandalous transaction must be immediately cancelled not suspended!

I shall be back with more — thousands of court cases will not stop me from serving the Ghanaian people with diligent, fearless, honest and patriotic parliamentary oversight.

For God and Country.

Ghana First

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