In a remarkable feat, the Social Security and National Insurance Trust (SSNIT) has turned its finances around, transforming a deficit of a little over GHS300 million into a surplus of over GHS230 million.
This impressive achievement has left the Public Accounts Committee (PAC) in awe, wondering what triggered such a drastic change.
At a public sitting in Accra on Thursday, August 15, 2024, to scrutinize the financial statement of SSNIT for year ending December 31, 2023, the PAC inquired from the Director-General of the public institution what accounted for their impressive performance during the period under review.
The Director-General of SSNIT, Mr. Kofi Bosompem Osafo-Maafo, in a sharp response, said the turnaround was driven by a combination of factors. A 29% increase in net contributions, a 49% growth in net investment income (about GHS706 million approximately), and effective cost control measures all played a crucial role, he noted.
“Mr. Chairman, we also managed to control cost fairly well, further contributing to the surplus”, he added.
He attributed the significant rise in net contributions to an increase in membership and improved collection efforts.
Hon. Isaac Owusu, who led the charge in asking the questions at the instance of the Ag. PAC Chair, Samuel Atta-Mills, NDC MP for Komenda-Edina-Eguafo-Abirem (KEEA), further inquired from the SSNIT Director-General what other sources of income contributed to their significant performance.
Mr. Osafo-Maafo who was accompanied by a number of directors from SSNIT noted that “the other income arises from penalties on delays of contributions and also incomes from the sale of our properties”.
At this point, it was obvious that the PAC was satisfied with the answers given by the Director-General of SSNIT.
“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”, Hon. Isaac Opoku averred.
