The Social Security and National Insurance Trust (SSNIT) has achieved a significant financial turnaround, transforming a deficit of over GH¢S300 million into a surplus exceeding GH¢230 million.
This represented an improvement of 176% in its financial performance.
This was revealed during the sitting of the Public Accounts Committee (PAC) on Thursday, August 15, 2024, to consider the audited financial statements of the Trust for the year ended 31 December 2023.
This remarkable achievement was commended by the PAC.
Total income also increased by 35.1% to GH¢5,272,183,000 in 2022 from GH¢3,903,635,000 in 2021 mainly due to an increase in net contributions received.
Total expenditure increased by 16.9% to GH¢4,930,637,000 in 2022 from GH¢4,217,700,000 in 2021 and this was largely attributed to an increase in benefits paid during the year.
Hon. Isaac Opoku, praised the SSNIT’s impressive performance, noting the organization’s substantial financial improvements.
He enquired, “Director-General, last year, you moved from a little over GH¢300 million deficit to a surplus of more than GH¢230 million. That is incredible. What did the trick?”
SSNIT’s Director-General, Mr. Osafo-Maafo, responding to the inquiry credited the turnaround to multiple factors, including a 29% increase in net contributions and a 49% growth in net investment income.
According to him, in addition to the increase in investments, SSNIT also managed to control costs fairly well in addition to inflows from other sources.
Mr. Osafo-Maafo also shed light on the sources of SSNIT’s ‘other income,’ stating that these funds come from penalties on delayed contributions and income from the sale of properties owned by SSNIT.
Hon. Opoku also commended SSNIT on its improved financial ratios, stressing the organization’s current ratio, which had improved from 1.1 in 2021 to 1.6 this year.
He said, “Your current ratio is better than the previous year. In 2021, it was 1.1 and this year, it’s improved slightly from 1.1 to 1.6. So, it’s not too bad, and we can only encourage you to improve upon it,” he noted.
The Public Accounts Committee praised SSNIT’s management for the positive financial strides and encouraged the Trust to maintain and further improve its financial health.
SSNIT also addressed an issue with the passion of 8.03 acres of land and commercial units from Switchback Developers Ltd. (SDL), due to a disagreement over the valuation of assets following SSNIT’s settlement of a $29.99 million syndicated loan on behalf of SDL.
The Auditor-General’s recent report reveals that despite SSNIT’s payment to Fidelity Bank and Bank of Africa, as stipulated in a Deed of Mutual Release signed on October 8, 2021, the Trust has yet to take possession of the assets.
Mr. Osafo-Maafo emphasized that they are actively working to execute the asset swap as agreed in the extraordinary general meeting held on June 3, 2021.