If indeed, Management of SSNIT believes that Private enterprises are able to run businesses more effectively, efficiently and profitably than a Government establishment with highly qualified and skilful personnel, then the entire scheme should be handed over to private entities to operate.
According to Management of SSNIT, they consider the diversifying of their 60% shares in its Hotels Portfolio the best option because of the consistent losses; no payment of dividends; inability to service indebtedness and maintenance and operational activities and workers emoluments and, require a regular injection of significant capital to run effectively.
If per management assertions of the hotels being running at losses is something to go by, then is it not appropriate to sack those whom they have tasked to take care of the venture and employ more competent managers?. Is it not logic that, dividends can be paid only when the hotels makes profit?. if the only option to find solutions to a non profit venture is by diversifying 60% it to a private entity, then there is no need to establish any government institution in the country. If that is exactly what management of SSNIT is up to, then the earlier all government institutions are handed over to the private entity, the better.
Among the measures management of SSNIT used as a yardstick towards the diversity of the hotels has to do with, reinvesting the funds to generate better returns and to ensure long-term sustainability and prompt payment of pensions.
Does this reason means private enterprise that has shown interest also going to suffer similar faith like being experienced by management of SSNIT, making them to dispose of the hotels?
Again, does it also mean that management of SSNIT are no more going to trade with monies to be received but only keep it at the Bank because they want to ensure long-term sustainability and prompt payment of pensions?
The claims by SSNIT management to reinvest funds received in more lucrative opportunities and enhancing the overall benefits for its members, are not convincing at all. What kind of lucrative opportunities is SSNIT management talking about. Are they saying hotel business are not lucrative?. If not, why would a private enterprise show interest to purchase it from the so-called competent management with high credentials?.
If indeed, SSNIT had highly lucrative opportunities in mind, what then prevented management from disclosing it to owners of the scheme, the kind of business they want to venture into on their behalf to enable the whole world to know how capable they are?
Why is SSNIT with all the so-called technocrats thinking of partnering a strategic investor with a proven track record in the hospitality business to manage the hotels before it can succeed? If that is the case then, what prevents the Management of SSNIT from sacking themselves or resigning from their positions to allow the private partner with a proven track record in the hospitality business to manage the entire business since, they have already exposed their incapability?
What kind of implementation priority restructuring nonperforming companies within SSNIT are management talking about? The fortune of every business depends on the competencies of its management since the business as an entity cannot manage itself because it takes a human being to manage a business.
How can SSNIT’s financial stability be improved if the manager of the venture fails to improve their performance in other to reduce the annual capital injections from the Pension?
One would therefore, wonder the kind of commitment and sustainability of the Scheme SSNIT is ensuring owners and the public on improving investment returns.
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