SSNIT granted GH¢10 million to AUDCL
The Social Security and National Insurance Trust (SSNIT), on Monday admitted that the trust gave GH¢10 million as loan to the African Union Development Consortium Limited (AUDCL) for the construction of 30 mansions at Ridge in Accra.
Mr Michael Adotey Addo, General Manager in-charge of Investments who made this known, when he appeared before Ghana at 50 Commission said SSNIT sold a 6.98-acre land at Ridge to the AUDCL for $4.5 million dollars for the same purpose.
Mr Addo, who was testifying to the three-member Presidential Commission at their sitting at the old Parliament House in Accra, said the total interest rate on the loan granted to AUDCL was 13 per cent.
He said the current value for the land was $11,294,000 while AUDCL’s indebtedness to SSNIT pertaining to the loan stood at $12,029,695.44.
The General Manager said a three-member task force made up of two SSNIT officials and one from AUDCL was formed to enable them to sell all the mansions after they had served the purposes for which they were built, although Amalgam Consult was also formed by the consortium for the same purpose.
Mr Addo attributed their inability to sell the houses to delays of Land Valuation Board in coming out with all the necessary valuation of the land and buildings put up by the AUDCL.
During cross-examination, Mr Akoto Ampaw, Counsel for Dr. Charles Wereko-Brobbey, former Chief Executive Officer of Ghana@50 Secretariat asked Mr Addo why it took the Land Valuation Board more than two years to value both the land and buildings at the Ridge Land.
In his response he said although his outfit had communicated several times to the Land Valuation Board to expedite action on the valuation, it did not yield any meaningful dividend.
When the counsel for Attorney-General’s Department asked if his outfit was aware that they were selling the land to the Government of Ghana for private developers, Mr Addo said he was not aware.
“It could have been different if we knew that the land was to be developed by private developers.”
When Justice Isaac Duose, Chairman of the Commission, asked Mr Addo whether SSNIT was aware that 13 out of the 30 mansions at Ridge were being refurbished for sale, he said he was not aware.
When Mr Addo was asked if SSNIT grant loans to any company that apply for the facility, he said SSNIT grant loans to limited liability companies based on the importance and relevance of the proposals.
He said such proposals were accepted if it led to the enhancement of society and the feasibility of such development projects to the general public.