North Tongu MP, Samuel Okudzeto Ablakwa says that Labadi Beach Hotel has sufficient resources to sustain its operation and deems it unnecessary to go ahead with the sale of a stake to Rock City Hotel.
According to him, upon careful evaluation of the record books of the said hotel, he was confident the hotel was of a better financial standing than the Rock City Hotel.
The four-star rated hotel is among three other hotels the Social Security and National Insurance Trust (SSNIT) almost sold to MP and Agriculture Minister, Bryan Acheampong's Rock City Hotel.
Mr Ablakwa, who blew the whistle on the deal, has raised concerns about why SSNIT would sell 60% of its stake in the hotels to a minister.
SSNIT has since clarified that it opened a tender on the sale of its stake and that the Agriculture Minister's hotel offered the best financial statements which was why the hotel was selected.
However, speaking on Joy FM's Newsnite, the North Tongu MP said he was privy to the financial books of the Labadi Beach Hotel, and that the hotel was in good financial standing to cater for the three other hotels including Rock City Hotel.
He argued that there was no need to continue with such a deal.
“I have just secured the annual financial statements from Labadi Beach Hostel from their auditors, Deloitte and will you believe that as we speak, Labadi hotel alone has GH₵54.8 million in cash reserves in five local banks.
“This year, if you at the latest audit that I am currently combing through, Labadi had a turn over GH₵158.4 million. They posted a profit of GH₵70.7 million
“Over the last five years, Labadi alone in addition to dividend, they have paid taxes in excess of GH₵25 million. This is a cash cow, Labadi Hotel alone can take care of all the other hotels and even take care of Rock City.
“I have looked at the financials of Rock City and they are no where near Labadi Hotel. Absolutely, no where near. It should have been Labadi swallowing Rock City not the other way round, if you look at the profitability of Labadi Beach hotel," he said.
The legislator raised concerns on why public officials who should be protecting state assets turn around and buy them.
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