The Social Security and National Insurance Trust (SSNIT) has broken its silence on the controversial demolition exercise carried out at the beachfront of its hotels, explaining that the operation was necessary to remove unauthorised occupants and structures that had persistently encroached on lands belonging to the state pension fund.
In a statement issued on Friday, October 2, 2026, SSNIT said it had sought the urgent intervention of the National Security Council Secretariat to address what it described as “persistent unlawful occupation, encroachment and unauthorised activities” on the beachfront adjoining and directly in front of the Labadi Beach Hotel and La Palm Royal Beach Hotel.
SSNIT’s Position: Protecting Workers’ Assets
The Trust emphasised that the two hotel properties form part of its investment portfolio and constitute significant national hospitality and tourism assets. According to SSNIT, it has a fiduciary responsibility to safeguard these investments, preserve their value, and ensure they continue to generate sustainable returns for contributors and pensioners under the Basic National Social Security Scheme.
“These assets belong to the workers and pensioners of Ghana,” SSNIT stated, underscoring that the demolition was not a punitive measure but a protective one aimed at preserving national assets.
The Trust outlined several risks posed by the continued encroachment, including threats to the safety and security of hotel guests, employees, service providers, and visitors. It also cited unauthorised access and proximity to sensitive guest and operational areas, increased exposure to fire, sanitation, environmental and public health hazards, and the deterioration of the beachfront, privacy, and service standards expected of internationally recognised hospitality facilities.
SSNIT further noted that construction activities on the beachfront and beach sand were contributing to the degradation of the coastal ecosystem, while the situation also posed reputational risks to the hotels, SSNIT, and Ghana’s tourism industry.
“In view of the foregoing, SSNIT requested support from National Security to protect the assets belonging to Ghanaian workers,” the statement said.
Beaches to Remain Open to the Public
In a move to allay public fears, SSNIT clarified that the beachfront would not be privatised following the removal exercise.
“The beaches will be cleaned and restored to a safe and desirable state and will remain open to the public,” the Trust assured.
What Happened at La Beach
The demolition exercise was carried out in the early hours of Friday, October 2, 2026, by personnel from the 48 Engineer Regiment of the Ghana Armed Forces, supported by the Ghana Police Service. Security personnel reportedly arrived at approximately 4:00 a.m. and directed workers, residents, and business operators to vacate the premises.
Structures completely or partially demolished included the Polo Beach Club, a well-known entertainment venue near the Labadi Beach Hotel, and facilities at La Pleasure Beach, also known as Labadi Beach. Affected occupants were seen attempting to retrieve belongings from the rubble.
Not a Flood Mitigation Exercise — Stan Dogbe
The demolition sparked confusion over its authorisation, with many initially linking it to the government’s ongoing flood mitigation programme. However, Deputy Chief of Staff in charge of Operations and leader of the Anti-Flood Taskforce, Stan Xoese Dogbe, moved quickly to set the record straight.
“Let’s not get it twisted. Friday’s action along a section of the beachfront was not a Flood Mitigation Action by the government task force,” Dogbe said in a Facebook post on Friday, October 2.
Dogbe explained that the operation was distinct from the work of the Anti-Flood Taskforce in areas including the Kpeshie Lagoon, East Legon Boundary Road, Oyarifa, and behind Mayfair Estates. He clarified that the demolition was carried out under the supervision of National Security at the request of the Labadi Beach Hotel.
“These are structures, some permanently built (Polo Beach Club and others) on the beach in front of the hotel, and which, according to the business, are adversely affecting the safety, tranquillity and reputation of the Hotel, diminishing the visitor experience and undermining the orderly management of one of Ghana’s most important tourism destinations,” he stated.
Background: A Long-Running Land Dispute
The demolition is the latest chapter in a long-running dispute over the beachfront land adjoining the Labadi Beach Hotel. The Polo Beach Club, owned by Spartan Ives Limited—a company linked to Kwame Blay, son of former New Patriotic Party (NPP) National Chairman Freddie Blay—has been at the centre of the controversy.
In December 2024, the High Court in Accra granted an injunction barring Spartan Ives Limited from accessing the beachfront of the Labadi Beach Hotel. The dispute escalated in September 2026 when Spartan-Ives Limited filed a lawsuit against Labadi Beach Hotel and two others over ownership of the beachfront land, just moments after the hotel discontinued a suit it had initiated laying claim to the same land.
The matter had been a subject of public debate following state capture exposés by now Foreign Affairs Minister Samuel Okudzeto Ablakwa between 2022 and 2024, in which he accused the former NPP National Chairman and his family of scheming to capture the beachfront of the Labadi Beach Hotel.
Political Fallout
The demolition has drawn sharp reactions from across the political spectrum.
The National Democratic Congress (NDC) in the La Dadekotopon Constituency expressed surprise at the exercise, insisting that its preliminary consultations indicated the area was not part of any planned demolition by the Labadi Beach Hotel. The constituency stated that neither the party nor local government authorities received advance notice of the operation.
Member of Parliament for La Dadekotopon, Rita Naa Odoley Sowah, confronted military personnel at the site, questioning the decision to demolish structures despite what she described as assurances from authorities that the area would be spared. The MP expressed deep concern over the impact on livelihoods, noting that many people depend on the beach for their daily income.
On the other side of the political divide, New Patriotic Party (NPP) flagbearer Dr Mahamudu Bawumia condemned the demolition, describing it as “sad” and expressing particular concern about the destruction of movable assets belonging to business operators.
“It is particularly painful and surprising that even movable assets which the owners could have removed easily were destroyed in a most bizarre fashion,” Bawumia said in a statement issued from Kumasi on Saturday, October 3, 2026. He pledged to rebuild the business and tourism ecosystem at La Beach and provide leases for affected businesses if elected.
What Comes Next
With SSNIT insisting that the operation was lawful and necessary to protect national assets, and affected business operators and political actors demanding accountability, the controversy is far from over. The pending court case between Spartan-Ives Limited and Labadi Beach Hotel is expected to determine the ultimate ownership of the disputed beachfront land.
For now, SSNIT maintains that its actions were guided solely by its mandate to protect the investments of Ghanaian workers and pensioners, and that the beaches will be restored and remain accessible to the public.
About SSNIT:
The Social Security and National Insurance Trust (SSNIT) is a statutory public trust charged with the administration of Ghana’s Basic National Social Security Scheme. It manages a portfolio of investments, including the Labadi Beach Hotel and La Palm Royal Beach Hotel, on behalf of contributors and pensioners across the country.
