The Social Insurance and National Insurance Trust (SSNIT) has given indication that it is engaging the Ministry of Finance to ensure that the government's outstanding debt of about ¢3.3 billion is settled.

The 2021 Auditor General’s Report had revealed that the Government of Ghana owed the Trust ¢4.33 billion.

However, in a statement, SSNIT said government has made some efforts to settle part of the indebtedness, adding “in 2020, two bonds totalling ¢1.0 billion were received as part payment of the indebtedness".

It chronicled how the debt came about, saying “the Controller and Accountant General Department (CAGD) as of December 31, 2020, owed the Trust ¢1.124 billion in respect of contribution receivable from Government of Ghana (GOG) employees. Also, per Section 64(1) of the National Pensions Act, 2008 (Act 766) and based on our previous recommendation, the Trust has imposed a penalty of 3% on delay payments by CAGD over the years to the tune of ¢3.209, bringing the total indebtedness of CAGD to ¢4.334.”

Management engaged in restructuring some of the 10 unlisted companies

With regard to the 10 unlisted companies that are yet to pay dividends to SSNIT, the Trust said management has been engaged in restructuring some of these companies (Golden Beach Hotel Limited, CDH etc.) to ensure that they become profitable and are able to pay dividends.

Again, it is also in the process of exiting some of these unprofitable companies.

SSNIT actually invested in these companies between 1986 and 2012

SSNIT completes swap deal of part of RSS indebtedness  

With regard to RSS Developers Ltd which SSNIT is a majority shareholder, the Trust said the issue is a legacy one, adding, it paid $36.89 million through RSS to Regimanuel Gray Ltd. (contractor for the RSS projects) in 2015 for construction of the RSS flats.

However, Regimanuel failed to undertake construction works to the tune of the amount paid.

However, SSNIT, said it has recently completed a swap of part of the debt owed it for all the completed housing units of RSS and has tasked the Board and Management of RSS to aggressively pursue the recovery of any funds that has not been used by Regimanuel for the purposes for which they were disbursed.

“This is a legacy issue dating back to 2011. In 2009, RSS Developers Ltd (RSS) was set up by SSNIT and Regimanuel Gray Ltd (Regimanuel) to develop houses for sale, with Regimanuel as the development partner (the contractor). RSS entered into loan agreements with SSNIT to fund its developments. SSNIT disbursed the funds to RSS according to the terms of the loan agreements in the years 2011, 2013, 2014 and 2015. RSS made payments to the contractor, Regimanuel, for the development of the houses”.

It further said “SSNIT did not make any payment to the RSS’s contractor (Regimanuel) for the project”, adding, “all the funds from SSNIT were disbursed to RSS, as per the terms of the loan agreements. RSS has not been able to honour its loan repayment obligations. SSNIT is therefore pursuing all payments due from RSS”.