PAC commends SSNIT for its financial success

The Public Accounts Committee (PAC) of Parliament has praised the management of the Social Security and National Insurance Trust (SSNIT) for the company’s financial success.

PAC also encouraged the Trust to maintain and improve its financial standing.

In 2022, SSNIT’s total income increased by 35.1 per cent, reaching GH¢5,272,183,000 from GH¢3,903,635,000 in 2021. This growth was primarily driven by an increase in net contributions received.

Members of the PAC praised the organization’s 176 per cent improvement in financial performance when Mr  Kofi Bosompen Osafo-Maafo, the Director-General appeared before the Committee on Thursday.

The Committee reviewed the Auditor-General’s Report on Government Ministries, Departments, and Agencies as of December 31, 2023.

“Last year, you moved from a deficit of over GH¢300 million to a surplus of more than GH¢230 million. That is incredible. What did the trick?” Mr Isaac Opoku, a member of the Committee, asked.

In his response, Mr Osafo-Marfo attributed the turnaround to several factors, including a 29 per cent increase in net contributions and a 49 per cent increase in net investment income.

“…Mr Chairman, the performance was driven by several factors. The first factor, there was a 29 per cent increase in net contributions received. Our net investment income also grew by 49 per cent to about 706 million approximately and there was also a significant increase in other income,” he said.

“We also managed to control costs fairly well. The other income arises from penalties on delays of contributions and also incomes from the sale of our properties,” Mr Osafo-Maafo added.

As a result, Mr Opoku praised SSNIT for its improved financial ratios, stating that the organisation’s current ratio had risen from 1.1 in 2021 to 1.6 in 2023.

He said: “Your current ratio is better than the previous year. In 2021, it was 1.1, and this year, it’s improved to 1.6. So, it’s not too bad, and we can only encourage you to improve upon it.”

In 2022, total expenditure increased by 16.9 per cent to GH¢4,930,637,000, from GH¢4,217,700,000 the previous year.

The increase in spending was largely driven by an increase in benefits paid out during the year.

SSNIT has turned a deficit of over GH¢300 million into a surplus of over GH¢230 million.

Source: GNA