Rock City wasn’t given preferential treatment — Bryan Acheampong on SSNIT Hotel Deal

The Minister for Agriculture and owner of Rock City Hotel, Bryan Acheampong, has dismissed allegations of preferential treatment in the proposed sale of the 60 percent stake in four hotels owned by the Social Security and National Insurance Trust (SSNIT).

Samuel Okudzeto Ablakwa, the North Tongu MP, claimed that Rock City was allowed to pay half of the bid price and spread the remaining half over 24 months, despite not having tax clearance.

He also noted that the hotel did not present a bank guarantee for the transaction.

“If you read the transaction advisors report, it is clear that transaction from the beginning as I said was an insider dealing…It reveals that Rock City was allowed to make an offer to pay half, 50% of the $61 million bid price and then they were allowed to spread the half over 24 months… Something that was not made available to other bidders.”

“All bidders were told that this is a one-off transaction, no instalment and yet Rock City was allowed an instalment plan. The transaction advisor also discovered that Rock City did not present a bank guarantee,” he stated.

In response to these allegations, Mr Acheampong stated in an interview with Umaru Sanda Amadu on Eyewitness News on Citi FM on Friday, that “Rock City Hotel was not given any preferential treatment.”

He stressed that the bid to acquire the SSNIT hotels was conducted transparently and fairly, with no special considerations given to his hotel.

“I continuously express my disappointment in Okudzeto for continuing hammering on points that he has no facts. First of all, Rock City was not given an exemption on tax clearance. They were not. I am told they submitted their bid in February 2022.

“In February 2022 they need to have filed their taxes for 2021 by April 2022. So even as of 2022 when they applied for the tender, their 2021 taxes were not due. So, you are given a provisional tax clearance based on the VAT and all other taxes that you have paid.”

“So, it is not true that Rock City was given any preferential treatment or did not have tax clearance…Sammy knows that but he continuously tries to mislead the public.

“During the negotiations, I am told Rock City proposed to pay 50% and the remaining 50% spread over two years. That was when SSNIT requested a bank guarantee and it was a point that Rock City had been offered as the preferred bidder. They were the only ones negotiating with SSNIT because all the others had not gotten to the negotiation stage,” he stated.

Meanwhile, Rock City Hotel has withdrawn its bid to purchase the 60 percent shares of some four Hotels owned by SSNIT.

The hotels include La Palm Beach Hotel, Labadi Beach Hotel, Royal Ridge Hotel and Elimina Beach Hotel.