Okudzeto Ablakwa exposes govt "deceptive narrative" on Labadi Beach Hotel
Sam Okudzeto Ablakwa, a member of parliament, has made a shocking revelation about the financial health of Labadi Beach Hotel, one of six hotels reportedly struggling and in need of a strategic investor.
According to Ablakwa, the hotel’s financial statements, prepared by Deloitte, show a vastly different story than the one being told by the government.
Ablakwa claims that Labadi Beach Hotel has cash reserves of GHS54,855,795.00 in five bank accounts and has seen a significant increase in turnover from GHS120,438,655.00 in 2022 to GHS188,076,649.00 in 2023. The hotel’s gross profit also more than doubled from GHS70,734,099.00 in 2022 to GHS158,490,448.00 in 2023.
The lawmaker alleges that the government’s narrative about the hotel’s struggles is “deceptive” and that Labadi Beach Hotel is, in fact, a “cash cow.” He suggests that the hotel’s management should be tasked with managing all of SSNIT’s hotels, given their apparent success.
Ablakwa’s revelations have sparked outrage, with many calling for transparency and accountability in the management of SSNIT’s assets. The lawmaker has vowed to continue fighting against what he sees as a questionable deal, threatening a demonstration on June 18 if the government does not reconsider its plans.
Read his message on X on May 29, 2024:
“I have finally secured the annual financial statements of Labadi Beach Hotel (Hotel Investments Ghana Limited) covering the last decade and been combing through the reports as prepared by the reputable Deloitte. I have also intercepted the 2023 management account of Labadi Beach Hotel. Incredibly, this is one of 6 hotels government says is struggling and desperately needs a strategic investor to inject capital and efficiency.”
“Contrary to the deceptive government/SSNIT narrative, the financials show that Labadi Beach Hotel is far more profitable than previously thought. The financials reveal that Labadi Beach Hotel has cash reserves in 5 bank accounts amounting to an impressive GHS54,855,795.00. Labadi Beach Hotel from the 2022 Deloitte financial statement had a turnover of GHS120,438,655. From the 2023 management account, this has commendably increased to GHS188,076,649.00. Labadi Beach Hotel in 2022 posted a gross profit of GHS70,734,099.00 — a figure which astonishingly more than doubled by 2023 to GHS158,490,448.00 In addition to dividends, Labadi Beach Hotel over the last 5 years has paid a significant GHS20,318,232 in taxes to government.”
“Clearly, Labadi Beach Hotel is a cash cow and not a struggling hotel as government propagandists are claiming. Anyone who takes over Labadi Beach Hotel alone can use its profitability to revamp all the hotels in SSNIT’s investment portfolio. Probably the all-Ghanaian management of Labadi Beach Hotel should be asked to manage all of SSNIT’s hotels. I am more convinced that this deal is not in our collective interest. Hands off our SSNIT hotels or get ready for our June 18 DEMO!”
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