A.G’s Report: SSNIT records $4.15m from $11.79m lost through liquidation of 3 companies

The Social Security and National Insurance Trust (SSNIT) says it has recovered US$4.15 million of the US$11,794,109 lost through the liquidation of three companies.

A statement issued by the Trust on August 13, in response to public concerns about the reported losses, said efforts were still ongoing to make further recoveries of locked up funds. 

It explained that the largely non-performing investment portfolio which has bedeviled the Trust predated the current management with some dating as far back as 1985.

Detailing the various investments, the statement said SSNIT invested US$6.08 million in Ningo Salt Limited (NSL) in July 2005, US$3,650,000 in Granite and Marbles Limited in July 1994 and US$5,038,153 in Canada Investment Fund for Africa (CIFA) in June 2005.

In the case of Ningo Salt Limited (NSL), the US$6.08 million stated as loss has reduced to US$1.93 million after the loan of US$4.15 million granted through Ecobank Ghana Limited was fully repaid with interest. 

On Granite and Marbles Limited, it noted that, SSNIT managed to retrieve its unpaid Social Security Contributions of GH¢428,337.07 adding that the loans were converted to equity prior to the liquidation. 

“Liquidation is underway and yet to be completed. The final accounts are yet to be submitted to the parties by the liquidator,” it stated.

On the Canada Investment Fund for Africa (CIFA), the Trust has recovered US$2,064,109 of the total investment with the Fund under liquidation since 2015. 

It said SSNIT was in contact with the Ministry of Finance to have the Trust’s portion of equity stake in Subri Industrial Plantation Limited (SIPL), amounting to US$626,522.47 transferred to SSNIT since 2015. 

As part of efforts to prevent such occurrences in the future, SSNIT said a new investment policy that better controls the investment process had been developed and was being implemented. 

Additionally, it stated that professionals and experts have been appointed to Boards of subsidiary companies which have led to major improvements in the corporate governance of the entities resulting in better returns on investments.

Despite the stated investments challenges, it said the Trust has made savings of over GH¢231m on legacy investments related cost through renegotiation since 2017 to rebalance investments. 

The statement noted that the Trust has increased its net assets from GH¢8 billion in 2016 to GH¢11 billion in December 2020 representing an increase of 35 per cent.

It assured all contributors, pensioners and the public that it would continue to review its investments and ensure that it maintains and deploys funds in only viable investments and manage contributions judiciously to safeguard the ability to continue paying monthly pensions.

BY CLAUDE NYARKO ADAMS 

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