The Board of Trustees of the Social Security and National Insurance Trust (SSNIT) has clarified that the recent removal of unauthorised occupants from the beachfront of adjoining Labadi Beach Hotel and La Palm Royal Beach Hotel was to protect its investments. According to a statement, SSNIT sought the urgent intervention of the National Security Council Secretariat to address the persistent unlawful occupation, encroachment, and unauthorised activities on the beachfront. This move was necessary to safeguard the investments and ensure they continue to generate sustainable returns for contributors and pensioners.
The two hotel properties, Labadi Beach Hotel and La Palm Royal Beach Hotel, form part of SSNIT's investment portfolio and constitute significant national hospitality and tourism assets. As such, SSNIT has a fiduciary responsibility to preserve their value and protect them from unauthorised activities. The statement noted that these assets belong to the workers and pensioners of Ghana, emphasising the importance of protecting them.
The continued encroachment on the beachfront posed significant risks, including threats to the safety and security of hotel guests, employees, service providers, and visitors. Additionally, it led to unauthorised access and proximity to sensitive guest and operational areas, increasing exposure to fire, sanitation, environmental, and public-health hazards. The encroachment also resulted in the deterioration of the beachfront, compromising the privacy and service standards expected of internationally recognised hospitality facilities.
Furthermore, the encroachment led to degradation of the coastal ecosystem resulting from construction activities on the beachfront and beach sand. This situation also caused reputational damage to the hotels, SSNIT, and Ghana's tourism industry. The disruption of hotel operations and the guest beach experience had a consequent adverse effect on patronage, revenue, and overall financial performance.
SSNIT cited the risk of further expansion of the encroachments, which could make recovery of the affected lands increasingly difficult and costly. In view of the foregoing, SSNIT requested support from National Security to protect the assets belonging to Ghanaian workers. The Board emphasised that the beaches would be cleaned and restored to a safe and desirable state and would remain open to the public.
The removal of unauthorised occupants from the Labadi beachfront was a collaborative effort between SSNIT and the National Security Council Secretariat. This action was aimed at protecting SSNIT's investments and ensuring the continued operation of the hotels. The Board's statement clarified that the move was not intended to deny the public access to the beach but to ensure that the area is safe and secure for all users.
The clearance of the Labadi beachfront is part of SSNIT's efforts to protect its investments and ensure that they continue to contribute to the national economy. The Board's actions demonstrate its commitment to safeguarding the assets of Ghanaian workers and pensioners. The hotels will continue to operate, providing essential services to the tourism industry while generating returns for SSNIT.
Key points
- SSNIT sought the urgent intervention of the National Security Council Secretariat to address the persistent unlawful occupation and encroachment on the Labadi beachfront.
- The removal of unauthorised occupants was necessary to protect SSNIT's investments and ensure they continue to generate sustainable returns for contributors and pensioners.
- The beaches will be cleaned and restored to a safe and desirable state and will remain open to the public.
