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SSNIT recovers US$4.15 million out of US$11.79 million loss cited in Auditor General’s report

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The Management of the Social Security and National Insurance Trust (SSNIT) has explained that it has recovered US$4.15 million out of US$11,794,109 lost through the liquidation of three companies, as cited in the 2020 Auditor-General’s Report.

This was contained in a press release, dated August, 13, from SSNIT in reaction to the 2020 Auditor General’s Report.

According to SSNIT, efforts are currently underway to recover the remaining locked-up funds.

The press release follows a revelation by the Auditor General’s Report that SSNIT had registered a total loss of $11.79 million from the liquidation of three of its investments with a total cash outlay of $14.768 million.

SSNIT invested US$6.08 million in Ningo Salt Limited (NSL) in July, 2005, US$3,650,000 in Granite and Marbles Limited in July, 1994, and US$5,038,153 in Canada Investment Fund for Africa (CIFA) in June, 2005.

The Auditor General thus directed the Management of SSNIT to investigate the non-performance of the investments to ensure value for money.

It added that the Management of SSNIT should, “ensure that officers whose action led to the loss are appropriately sanctioned for the loss. We further urged Management to ensure that effective feasibility studies are carried out before investing.”

Revealing efforts made to recover the locked-up funds, SSNIT said:

“In the case of Ningo Salt Limited (NSL), the US$6.08 million stated as loss has reduced to US$1.93 million. The loan of US$4.15 million was granted through Ecobank Ghana Limited. Ecobank has fully repaid SSNIT with interest. The investment was made in July, 2005.

“On Granite and Marbles Limited, SSNIT managed to retrieve its unpaid Social Security Contributions of GH¢428,337.07. All the loans were converted to equity prior to the liquidation. Liquidation is underway and yet to be completed. The final accounts is yet to be submitted to the parties by the liquidator. The investment was made in July, 1994.

“On the Canada Investment Fund for Africa (CIFA), the Trust has recovered US$2,064,109 of the total investment. CIFA has been under liquidation since 2015. As per the Fund Manager’s 2019 report to shareholders, the liquidation process is yet to be concluded. The investment was made in June, 2005,” the statement said.

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