SSNIT didn’t only spend $66m for software, it spent GH¢240m on mailing cards

The Social Security and National Insurance Trust (SSNIT) is in the news for spending an amount of $66 million for software. But that’s not all, the institution entrusted with the life savings and future security of Ghanaian workers seems to have a reputation for splashing money on projects, that don’t often work.

In 2015, SSNIT paid the Ghana Post a total of GH¢240 million to deliver biometric cards around the country, but the programme didn’t seem to go well and SSNIT blamed the poor addressing sytem of houses in Ghana for the failure of the project, as if to say that was not taken into consideration before the decision was taken.

Dr Prosper Ayisah, Takoradi Area Manager, has been cited by the GNA to have said wrong addressing system continue to cost the SSNIT,  huge sums of monies that could have been invested for good returns.

Speaking in 2016, Dr. Ayisah reportedly said that the Trust paid the Ghana Post GH¢240 million for Express Mailing System to enable the Ghana Post distribute cards and other relevant documents to clients under the scheme.

He said because most addresses were either wrong or non-existent, officials of the EMS department had to do multiple roaming and searching to locate clients, which contributed to the huge cost incurred.

Dr Ayisah said the monies could have been invested in the money markets, either through short or long term debentures to raise extra monies for the scheme, which could increase pension amount.

Meanwhile, after paying this huge amount to the Ghana Post, most clients had to travel to the Ghana Post to collect their cards.

SSNIT changed over to the biometric system and started registering its clients in 2014.

The SSNIT is a typical example of weak and systemic failure in Ghana.

A Ghana Business News editorial