Andrew Egyapa Mercer, the Member of Parliament for Sekondi refuted publicly stated profit data of Labadi Beach Hotel as published by fellow MP for North Tongu, Samuel Okudzeto Ablakwa.
The two lawmakers clashed on Metro TV’s Good Morning Ghana show (June 21, 2024).
They strongly disagreed on the subject of the planned sale of some four hotels owned by the state pensions outfit SSNIT, to Rock City Hotels owned by MP for Abetifi and Minister of Agriculture, Bryan Acheampong.
Ablakwa has insisted that Labadi Beach Hotel, one of the four hotels Rock City is in line to purchase was profitable and he saw no reason it should be sold to Rock City whose financial records showed, according to intercepted documents, was recording losses.
Ablakwa’s claim that Labadi beach had made profit in excess of 150 million cedis was a major issue that Egyapa Mercer debunked decisively.
He pointed out that while Ablakwa was referring to gross profit of the hotel for 2023, the true state of profitability was in the net profit status of any company.
Ablakwa appeared to agree with Mercer’s position only to fight back that whatever the profits the hotel made, “so do we have to sell it?”
Read excerpts of their exchange
Egyapa Mercer: In 2023, Labadi Beach made a turnover of 21,871,394 Ghana cedis and a net profit after tax of 51 million cedis, so where is the 150 million cedis?
Ablakwa: You are talking about net profit, I am talking about gross profit.
Egyapa Mercer: What is the meaning of gross profit? The profitability of an entity is determined as per its net profit, so you put the figure out there (to create a bad impression).
I have the profitability of Labadi Beach and all the six hotels from 2009 to 2023 and in fact, the only dividend that Labadi Beach has paid to SSNIT over the 15 year period is 48 million Ghana cedis. 1.5% investment return for SSNIT,” he charged.
Egyapa Mercer went on to lambast Ablakwa for lacking principles over the sale of assets to politicians citing how previous governments he served in schemed to sell out state assets that were profitable to Nigerians – citing the case of some local banks.
Watch the Ablakwa – Egyapa Mercer faceoff
