The Trade Union Congress (TUC) has criticized the management of the Social Security and National Insurance Trust (SSNIT) for failing to address concerns raised by the International Labour Organization (ILO) regarding the management of its investment portfolios.
The TUC claims that the mismanagement of investment funds is the reason SSNIT has not responded to the ILO’s inquiries about the viability of these investments.
SSNIT has yet to provide transparent information about its pension investments since the ILO raised these concerns.
The TUC emphasizes that the opaque nature of SSNIT’s pension investments is troubling.
They argue that due to mismanagement, SSNIT could not answer the ILO’s questions, leading to the ILO’s report predicting that Ghana’s pension fund could be depleted in ten years.
Dr. Kwabena Nyarko Otoo, Director of Research at TUC, sounded the alarm during a discussion on organized labour’s decision to call off a nationwide strike.
The strike was intended to pressure SSNIT to halt the sale of its 60 percent shares in six hotel portfolios across the country.
Dr. Otoo noted that despite discussions with the ILO to consolidate SSNIT pension payments, this has not been implemented since 2014.
He expressed concern about workers retiring after 20 to 35 years of service with meager pensions of GHS 500, which is particularly harsh when retirees are unable to work.
He criticized the disparity where some contributors receive lower pensions while others, who do not contribute, receive higher pensions, calling for this issue to be rectified.
Dr. Otoo questioned why SSNIT is intent on selling its hotel shares when smaller hotels in the country are profitable.
He warned that TUC would resist any attempts to run down these hotels for diversification purposes.
He further warned that if SSNIT’s management does not address these issues, TUC would demand the dissolution of its management and board.
Dr. Otoo made these remarks on Accra-based Citi FM on Monday, July 15, 2024.
Source: Classfmonline
