The Public Accounts Committee (PAC) of Parliament has commended the management of the Social Security and National Insurance Trust (SSNIT) for its impressive financial turnaround. The Committee urged the Trust to maintain and further improve its financial performance.
In 2022, SSNIT’s total income surged by 35.1%, reaching GH¢5,272,183,000, up from GH¢3,903,635,000 in 2021. This significant growth was primarily due to an increase in net contributions received. Members of the PAC lauded the organization’s remarkable 176% improvement in financial performance when SSNIT’s Director-General, Mr. Kofi Bosompen Osafo-Maafo, appeared before the Committee.
The Committee was reviewing 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?” asked Mr. Isaac Opoku, a member of the Committee.
In response, Mr. Osafo-Maafo attributed the financial turnaround to several factors, including a 29% increase in net contributions and a 49% growth in net investment income.
“The performance was driven by several factors. First, there was a 29% increase in net contributions received. Our net investment income also grew by 49% to about GH¢706 million approximately, and there was also a significant increase in other income,” Mr. Osafo-Maafo explained.
He further noted that SSNIT managed to control costs effectively, with additional income arising from penalties on delayed contributions and revenue from property sales.
Mr. Opoku praised SSNIT’s improved financial ratios, highlighting that the organization’s current ratio had increased from 1.1 in 2021 to 1.6 in 2023. “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,” he said.
In 2022, SSNIT’s total expenditure rose by 16.9% to GH¢4,930,637,000, up from GH¢4,217,700,000 the previous year, largely due to an increase in benefits paid out during the year.
