Director General of SSNIT, John Ofori-Tenkorang An analysis of the quality of the Social Security and National Insurance Trust’s (SSNIT) investments in loans and advances has revealed that 94.7% is impaired.
Loans and advances of the trust amounted to GH¢1.7 billion (GH¢1,750,625,000).
Out of this amount, a total of GH¢1.7 billion (GH¢1,705,212,000), representing 94.7%, falls into stage 3 of International Financial Reporting Standards (IFRS) 9 classification.
This stage of the classification suggests that the loans’ credit risk has increased to the point where credit is considered to be impaired.
Only GH¢45.4 million not impaired
It means only GH¢45.4 million (GH¢45,413,000) of loans and advances is not impaired.
These are contained in the report of the Auditor-General on the Public Accounts of Ghana: Public Boards, Corporations and Other Statutory Institutions for the period ended December 31, 2020.
The report, dated May 31, 2021, was signed by Johnson Akuamoah Asiedu, acting auditor-general.
GH¢26.8 million losses to be written off
Management proposed to the board to write off losses of GH¢26.8 million (GH¢26,838,588.87) due to the official liquidation of Bridal Trust, which could only pay GH¢5,490,000 out of its accumulated loan of GH¢32.7 million (GH¢32,328,588.87).
GH¢442m locked up in non-performing investment The report showed that GH¢442 million (GH¢442,730,876.74) represents cash locked up in non-performing investment by SSNIT. GH¢70.8m invested in 3 liquidated firms According to the report, SSNIT also lost an amount of GH¢70.8 million (GH¢70,814,300), which is equivalent to $11.79m from the liquidation of three of its investments with a cash outlay of $14.768 million. No return on 2 out of the 3 liquidated investments for 15 years The trust had not received any returns from two of the companies for its investment for the past 15 years. Over US$6m invested in liquidated Ningo Salt Company Limited SSNIT invested in Ningo Salt Limited in 2005 by injecting $1.93 million as equity and $4.15million as debt finance.This brings SSNIT’s investments to $6 million ($6,080,000) to hold 40% shares in the company.The trust lost its entire $6 million ($6,080,000) investment.Declaration of solvency was dated October 31, 2019, and all assets were sold and it has paid off its liabilities. Shareholders were not paid any surplus. Over $3.6m invested in liquidated Granite and Marbles Limited In July 1994, SSNIT invested $3.6 million ($3,650,000) in Granite and Marbles Limited, representing 22% shares in the company.In this case too, SSNIT lost its entire $3.6 million ($3,650,000) investment.According to the report, SSNIT […]
