The Board and Management of the Social Security and National Insurance Trust (SSNIT) have announced the termination of the sale of 60% of their shares in four hotels. This decision follows intense pressure and threats of a nationwide industrial strike by Organised Labour, which had called for a cessation of work starting Monday, July 15, if the controversial hotel sale was not halted.
In a statement issued on July 12, SSNIT assured pensioners, contributors, and the public of its unwavering commitment to managing the Trust’s assets prudently to ensure the sustainability of the Pension Scheme. The statement read: “The Board and Management of Social Security and National Insurance Trust (SSNIT) wish to inform the public that the process to divest 60% of SSNIT’s stake in the hotels has been terminated. We wish to assure pensioners, contributors, and the public of our commitment to managing the affairs of the Trust prudently for the sustainability of the Pension Scheme.”
Labor Unions’ Pressure
The decision comes in response to strong opposition from Organised Labour, which had been vocal about its dissatisfaction with the proposed sale. The labor unions had argued that the sale of the hotels, assets owned by the trust fund meant for the benefit of pensioners, was not in the best interest of SSNIT’s beneficiaries. The threat of a nationwide strike underscored the level of discontent and the potential for widespread disruption.
Withdrawal of Bid by Rock City Hotel
In a related development, Rock City Hotel, one of the bidders for the 60% shares, officially withdrew its bid on July 12. This move further solidified the termination of the sale process, as one of the key interested parties stepped back from the transaction.
The termination of the sale process is seen as a victory for Organised Labour and a significant decision by SSNIT to prioritize the concerns of its stakeholders. The Board’s assurance to manage the Trust’s assets prudently aims to restore confidence among pensioners and contributors.
This development highlights the critical role of stakeholder engagement in the management of public assets and the importance of addressing concerns through dialogue and transparency. As SSNIT moves forward, it will be imperative for the Trust to continue building trust with its stakeholders while ensuring the sustainability and effectiveness of the Pension Scheme.