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Information available to AFAG indicate that the SSNIT is at the verge of either liquidating or offloading its 100% stake in one of its subsidiaries, the SSNIT Informal Sector Fund (SISF) into private hands on the pretext that SISF is not viable, and a financial drain on SSNIT. Our preliminary investigation points to the fact that, SISF is a very viable company with the potential of even exceeding the current mobilizations made by SSNIT in the near future. The total failure of SSNIT to supervise the company have allowed the Managing Director, Kwame Peprah, and his cohorts (the Executive Management and the Executive Council) to mismanage the company both financially and operationally and thereby making it look like the Fund is not viable. AFAG wonders how a company within its 3 years of operation has registered over 90,000 Ghanaians and has a Fund Size of over GHC 23million through the hard work and sacrifices of staff could be described as not viable and a drain. To us what this means is that if SSNIT has supervised the company well and checked the siphoning of monies from the company into private pockets and personal pleasure of the Executive Management, it would have done far better. The smoke screen SSNIT has used is that SISF is autonomous. The MD has used this smoke screen very well to mismanage the company to a point where workers salaries cannot be paid, and the Field Staff who collect contributions from informal sector workers have been given a one month break under the guise of Christmas break. Which company breaks its� core activity for Christmas festivities for one month? THE CASE AGAINST THE MANAGING DIRECTOR Several allegations have been made against the MD which include, profligate spending to the tune of GHC70, 000 on trips abroad, threats, intimidations, non adherence to statutory regulation by engaging a consultant to develop and review a 5-year strategic plan within a year at a cost of US$70,000, insults on workers, outrageous rental of a residence to him costing over $100,000 for two years. Furnishing for the MD�s residence to the tune of GHC 11,000 bears no corresponding inventory of items bought yet when Marketing Officers request for legitimate expenses such as transport subsidy to assist them mobilize more contributions and undertake monitoring exercises, they are told there is no money! AFAG wonders why all the calls on the SSNIT Board and Director General to check the malfeasance going on in the company by workers have gone unheeded? Why is SSNIT refusing to call the MD to book? MISSING EIGHT MILLION GHANA CEDI SEED MONEY Where is the eight million Ghana Cedis (GHC8, 000,000.00) released by SSNIT to start the company? This amount seems to have been all dissipated despite the fact that, the items they were budgeted for are not all in place. These included 6 saloon vehicles, 3 operational vehicles, furnishing, logistics, communication network and infrastructure etc. Currently the Fund is fast accumulating debts for services and supplies that it has received but largely unpaid for: A rather precarious situation for the Fund�s Balance Sheet position. Interestingly, the budget and funds for above stated items were released as part of 2008/2009 budget allocation for the Fund by SSNIT. These are issues SSNIT should immediately ask the MD, his Executives and the Board to step aside on for full scale investigations to proceed instead of hiding behind �the project is not viable slogan� whilst the rot continues � notwithstanding all the above which has culminated into the bad financial situation of the company, in a recent SSNIT Board Meeting, the same MD has been tasked to lead the process of restructuring the company which includes liquidation. QUESTIONS 1. Why is SSNIT refusing to meet its commitment of releasing to SISF the allocated Funds to support its budget and this is hampering the fund from meeting its financial obligations? 2. Why has SSNIT arbitrarily delayed and stretched beyond measure all the processes of reviewing and approving the budgetary requirements of the Fund for the years 2009, 2010 and 2011? 3. Is SSNIT intentionally looking on so that its� false claim that the company is not viable will �materialize� so that the company will be given on a silver platter to political big wigs? Is SSNIT ready to sacrifice the expectation of over 90,000 informal sector contributors from having good retirement for short-term gains for few political big wigs? What about the consequences of rendering over 250 Ghanaians staff of SSNIT jobless? 4. Why has SSNIT outsourced the field marketing staff function to Mon Tran Ltd, knowing very well that, after 5months, the company has not been able to meet its full staff capacity? Why has SSNIT turned a blind eye to the high turnover rate of the company which is affecting performance and fund mobilization? Is SSNIT not aware that, without mobilizing funds from the market the scheme would collapse? 5. Why would the Chairman of the Executive Council, Mr. Kwame Peprah and the Public Relations Manager spend over GHC70,000 on the Diaspora marketing agenda in the UK, Tanzania and USA when the local market is only 7% won? A couple of months after this frivolous expenditure workers could not be paid under the pretext that SSNIT is not releasing funds to run the company (these are the rots that SSNIT should be checking and not a question of viability). 6. We are aware of these smoldering political machinations with an eye on the funds the company has accrued over the period. We are also aware of the political big wigs behind these schemes to rob the informal sector worker of a future pension, and the protection being given to Kwame Peprah as he surgically tears apart the company. 7. Is SSNIT preparing to transfer 23 Million Ghana Cedis to first Bank, which is alleged to be Kwame Peprah�s Bank? OUR RESOLVE The recommendations of AFAG are; 1. Executive Management should be asked to step aside for a full scale forensic audit to be conducted into the activities of the Fund, especially the financials. 2. The entire set up of the Fund, laudable as the principle is, should be totally overhauled including a change from a limited by guarantee company to one limited by shares so that it can explore other business opportunities offered by the enactment of Act 766. 3. SSNIT intervenes expeditiously to dialogue with staff and to explain the way forward, imbibe a sense of vision and direction in workers, and ensure that outstanding salaries are paid. 4. The decision to liquidate SISF should be taken off the table and the fund revitalized. 5. The Board of SISF should be reconstituted and fused with more knowledgeable people with business drive. 6. AFAG is convinced that, the informal sector holds a high potential for the Fund and that SSNIT should nurture and grow SISF accordingly by playing a VERY vital role in the investment of mobilized funds. AFAG is convinced that, the informal sector holds a high potential for the fund and that SSNIT should sustain it accordingly and close a window of hope to persons who will tear the Fund apart for their parochial interest. AFAG is coming out soon with our statement on the demonstration on massive corruption in public institutions and unbearable fuel prices soon. SIGNED ARNOLD BOATENG 0244294754 ABU RAMADAN 0244570006 DAVIS OPOKU 0244861593 HENRY ASANTE 0248274646 HON APEATU ANKRAH 0244375034 BRIGHT ACHEMPONG 0276374763