SSNIT retrieves USD 4. 15 million from lost funds

The Social Security and National Insurance Trust (SSNIT) has been able to recover USD 4.15 million which represents about 35.19% of the total lost funds through the liquidation of three (3) companies.

It was revealed that the Trust made investments worth USD 6.08 million in the Ningo Salt Ltd. (NSL) in July 2005, USD 3,650,000 in Granite and Marbles Ltd. in July 1994 and an amount of USD 5,038,153 in the Canada Investment Fund for Africa (CIFA) in June 2005 among other investments which dates as far back as 1985.

The Trust disclosed that the loans amounting to USD 4.15 million was granted through Ecobank Ghana Limited. The amount has been fully repaid with interest to SSNIT. This is in relation to the investment made in July 2005.

In a statement issued by the Trust, it was disclosed that the loans were converted into equity prior to the liquidation, meanwhile the Liquidation was underway and yet to be completed.

Meanwhile, it indicated that the final accounts were yet to be submitted to the parties by the liquidator, on the investment made by the Trust in July 1994.

Furthermore, the statement revealed that as per the Fund Manager’s 2019 report to shareholders, the liquidation process was yet to be concluded on the investment made by the Trust in June 2005.

It also revealed that some investments were also made with Subri Industrial Plantation Ltd. (SIPL). Although government had about 80.40% stake in the company, the establishment was owned by a consortium of financial institutions.

Recovering the lost funds

The statement by the Trust indicated that adequate measures have been put in place to recover the missing funds. Further indications revealed that, in the case of Ningo Salt Ltd, the amount of USD 6.08 million owed has been reduced to USD 1.93 million.

Also, in the case of Granite and Marbles Ltd, the Trust managed to retrieve its outstanding social security contributions of GHs 428,337.07. Additionally, on handling the Canada Investment Fund for Africa (CIFA), the trust recovered an amount of USD 2,064,109 out of the total investments.

The Trust assured the public on its continuous engagement with the Ministry of Finance to retrieve the unpaid funds. It said that, as part of efforts to prevent such occurrences in the future, a new investment policy that better controls the investment process have been developed and was being implemented.

Also, professionals and experts have been appointed to Boards of subsidiary companies, this initiative have led to significant improvements in the corporate governance of these entities which will result in better returns on investments.

The statement again disclosed that, under the current Management, some significant adjustments have been made to rebalance investments. The Trust, for instance, have made savings of over GH¢231 million on legacy investments related costs through renegotiation since 2017.

Additionally, as evidenced by prudent management of funds, the Trust have been able to increase its net assets from GHs 8,406 million in 2016 to GHs11,350 million as of December 2020.

The Trust 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. It also revealed that efforts have been put in place to ensure that the Trust gets the best deal on non-performing legacy investments in the case of any liquidation.