SSNIT is becoming a sinking fund that workers’ funds are used to take care of – Freddie Blay

Former National Chairman of the New Patriotic Party (NPP), Freddie Blay, has criticised the demolition of structures along the La Beach area in Accra, arguing that the exercise could worsen financial losses associated with the Social Security and National Insurance Trust’s (SSNIT) investments in the hospitality sector.

Mr Blay said SSNIT should be looking at ways to strengthen and maximise returns from its hospitality investments rather than allowing the demolition of businesses that, in his view, have contributed to a growing tourism and entertainment economy along the beachfront.

“It’s becoming a sinking fund that workers’ funds are used to take care of. SSNIT is losing,” he said.

Speaking in an interview on Asempa FM’s Ekosii Sen, Mr Blay questioned the decision to describe businesses operating along the beachfront as encroachers, arguing that commercial activities in the area predate the construction of the Labadi Beach Hotel and other facilities.

“The beachfront is not part of Labadi Beach Hotel. Businesses have been operating along the beachfront for over 70 years, even before these hotels were built. So why describe them as encroachers?” he asked.

According to him, the beachfront has developed into a vibrant tourism and entertainment hub that generates significant economic activity, particularly during festive periods.

He said the area provides a different tourism product from what the hotels offer and should be viewed as part of the broader hospitality ecosystem.

“It’s a well-organised place, especially during the festive season. They rake in millions. It’s a whole tourism economy. It’s a different product from what the hotels offer,” he said.

Mr Blay further questioned whether members of the SSNIT Board of Trustees had adequately assessed the situation on the ground before supporting the demolition exercise.

“The SSNIT Board of Trustees, some of them have not even been to the beachfront to see what is going there,” he claimed.

He also argued that SSNIT should explore partnerships and other investment strategies to improve the performance of its hospitality assets.

According to Mr Blay, previous discussions about bringing other investors or partners into some of the SSNIT-owned hospitality businesses did not materialise.

He maintained that the demolition could have broader implications for Ghana’s hospitality and tourism sector, which he described as a growing industry.

“Those who took the decision, I think they have done a great disservice to the country. The hospitality industry is one growing one and that place is a growing economy,” he said.

Mr Blay’s comments follow the demolition of Polo Beach Club and other structures along the La Beach area in an exercise involving personnel from the Ghana Armed Forces’ 48 Engineer Regiment and the Ghana Police Service.

SSNIT has defended the clearance, saying it sought the intervention of the National Security Council Secretariat to remove what it described as unauthorised occupants and activities from the beachfronts adjoining the Labadi Beach Hotel and La Palm Royal Beach Hotel.

The Trust has cited concerns including the safety and security of hotel guests, employees, service providers and visitors, unauthorised access to restricted areas, and fire, sanitation, environmental and public health risks.

SSNIT has also raised concerns about the deterioration of the beachfront and the impact of construction activities and the use of beach sand on the coastal ecosystem.

In a statement issued on October 2, 2026, the SSNIT Board of Trustees said the Labadi Beach Hotel and La Palm Royal Beach Hotel form part of its investment portfolio and are significant national hospitality and tourism assets.

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