SHAREHOLDER SUES SSNIT OVER HOTEL SALE

A shareholder in Golden Beach Hotels (Ghana) Limited has sued the Social Security and National Insurance Trust (SSNIT) at the Accra Fast Track High Court seeking to stop the Trust from selling La Palm Royal Beach Hotel.
Rexol International Limited, which owns 30 per cent shares in the hotel, is further seeking a declaration that the recovery of $8,649,937.53 from La Palm Beach Limited or the sale of La Palm Royal Beach Hotel was contrary to the guarantee agreement executed by SSNIT and the company on February 25, 1999 and that by virtue of the joint venture agreement and the contract of indemnity executed in 1999, all debts of the hotel, including a loan of $5.5 million from the Merchant Bank, were deferred, transferred and absorbed by Golden Beach Hotels Limited.
It is also seeking an order to set aside the purported Deed of Mortgage and Fixed Charge executed between SSNIT and La Palm Beach Limited, dated December 22, 1999, because it was in breach of the Memorandum of Deposit of Title Deeds executed between them, dated February 25, 1999.
The court has fixed May 22, 2007, to continue with the evidence of the plaintiff's first witness.
In its statement of claim, Rexol said it was a limited liability company duly incorporated under the laws of Gibraltar and also incorporated under the laws of Ghana with 30 per cent shares in Golden Beach Hotels (Ghana) Limited while SSNIT held 70 per cent shares.
The plaintiff said Golden Beach Hotels held 100 per cent shares in La Palm Royal Beach Hotel, which was controlled and managed by SSNIT or its representatives and, therefore, it would not be possible for Golden Beach Hotels to commence the action.
It said on February 25, 1999, SSNIT and La Palm Beach Limited entered into a Guarantee Agreement whereby SSNIT agreed to guarantee a $5.5 million loan facility obtained by the company from Merchant Bank Ghana Limited to enable the company to complete phase one of the La Palm Beach Hotel, then under construction.
According to the plaintiff, on or about December 7, 1999, La Palm Beach Limited liquidated all outstanding debts it owed to Merchant Bank and notwithstanding that, SSNIT and La Palm Beach Limited purported on December 22, 1999, to execute a deed of mortgage and a deed of legal charge.
It said that the documents or deeds were executed on behalf of La Palm Beach Limited by Isaac Nantwi Kankam (now deceased), who purported to be its managing director and that at all material times to the execution of the deeds, Rexol had transferred all its shares in La Palm Beach Limited to Golden Beach Hotels, which became its sole member and Isaac Nantwi Kankam was not even a director of La Palm Beach Limited and lacked the capacity to execute any such document.
The plaintiff said that in spite of all that, SSNIT had taken legal action against La Palm Beach Limited claiming a recovery of $8.649,937.53 or in the alternative a judicial sale of La Palm Royal Hotel in which La Palm Beach Limited had purportedly admitted in all averments of SSNIT.
The SSNIT in its statement of defence admitted instituting action against La Palm Beach Limited for the recovery of $8,649,937.53 and that the total amount that it guaranteed was $5 million, which was to attract an agreed interest of $500,000 of 7.5 per cent per annum.