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Loan repayments: SSNIT restructures portfolio to retrieve loans from defaulting firms

The Auditor General in its 2019 report charged SSNIT for failing to collect a loan of GHC2.37 million given to eight companies

The Social Securities and National Insurance Trust (SSNIT), says it has restructured its loan portfolio to help it retrieve loans expended to companies.

The Auditor General’s report has revealed that several companies have defaulted in the payment of about GHC2.37 million in loans issued by SSNIT for many years.

In recent times SSNIT has come under attack by a section of the public who complain about poor investments which they say, will leave pensioners worse off.

However, speaking on the Asaase Breakfast Show, John Ofori-Tenkorang, director general of SNNIT, says there is no cause to worry as measures to retrieve the loans have been instituted.

He said, “Some of these loans that the AG flagged…all these loans are supposed to be commercial so they attract the requisite interest rate. It’s just that the time for payment has come due and the borrower has defaulted and some of them get restructured. In this case, these are all past due where they haven’t been able to make the recurring payments that they are supposed to make…

“So these loans were found to be outstanding and then the Auditor General’s comment in almost all of them was that management should intensify their efforts to collect. For all these loans, we’ve done something about them…” Ofori-Tenkorang said.

He has therefore assured that the nonpayment of loans would not affect pensioners’ claims, adding that SSNIT has put in a lot of measures to secure pension claims.

In its 2019 report which was released last month, the Auditor General reportedly charged SSNIT for failing to collect a loan of GHC2.37 million given to eight related companies in contravention of Section 91(1) of Act 921.

The report attributed the infractions to ineffective due diligence on the investment by the Social Security and National Insurance Trust (SSNIT).

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