Tag: Radisson Blu hotel

Lawmakers in the Edo State House of Assembly have given nod to Governor Monday Okpebholo to work with relevant anti-graft agencies to recover N17.5bn from two Escrow Agents, Meristen Trustees Limited and Emerging Africa Trustees Limited.

The N17.5bn was the balance of the N25bn former Governor Godwin Obaseki raised from the Capital market to invest in the Radisson Blu Hotel.

Besides the funds, the lawmakers also asked Governor Okpebholo to recover the complete statement of account.

Both agents were present at the investigative panel set up by the Assembly to look into ownership and funding of the Radisson Blu Hotel.

They were appointed by former Governor Godwin Obaseki to oversee transfer of the Radisson Blu Hotel to 

the Hospitality Investment Management Company.

In the report submitted by the Committee, it said the Escrow Agreement was not executed by the supposed Escrow Agents thus invalidating the Agreement and that the supposed investor failed to meet up with the payment schedule in the ‘defective Escrow Agreement.’

It said no kobo from the N10bn paid by the investors entered the state government coffers.

Besides recovery of the N17.5bn, the Assembly asked Governor Okpebholo to retake full and total control of the Hotel.

Read Also: Ribadu, Umahi, Ojulari in Rivers to deepen Ogoni peace talks

It said the Edo State Government did not did not receive a kobo for the Hotel and title to the Hotel was never transferred from the Edo State Government to either Ministry of Finance Incorporated (MOFI) nor the Hospitality Investment and Management Company (HIMC).

“That the Edo State Government should contract competent hands to complete the renovation of the Hotel and take all steps to put the Hotel to use for the benefit of the good people of Edo State in particular and the world in general.

“The Edo State Government should immediate revoke the fraudulent Certificate of Occupancy to the property issued in the name of Hospitality Investment and Management Company Limited and revert same to the Edo State Government that purchased the property.

“That the Edo State Government initiate legal action and work with relevant Anti-graft Agencies to retrieve both the complete statement of account and the balance of the Seventeen Billion, Five Hundred Million Naira (N17,500,000,000.00) Bond proceeds still in the possession of the Escrow Agents. Meristen Trustees Limited and Emerging Africa Trustees Limited.”

• Okpebholo to petition EFCC

The Peoples Democratic Party in Edo State and the Edo State Government have locked horns over funding of the Radisson Blu hotel under former Governor Godwin Obaseki.

Obaseki had named the Radisson Blu hotel as one of his legacy projects.

The Edo PDP, in a statement, said the onslaught against the many legacy projects of Obaseki was neither accidental nor coincidental.

 It said it was the conduct of a government without ideas, without vision and without a basic grasp of modern governance.

Spokesman for the Edo PDP, Dan Osa-Ogbegie, in the statement, said the APC resorted to tearing down investments they neither initiated nor understood.

He explained that the Edo State’s ₦2 billion contribution was seed equity injected to de-risk the project and attract credible private capital.

He said the core private investor brought in substantial equity of its own.

“Other funds referenced by the government, including portions of bond proceeds, were deployed as loans to the Special Purpose Vehicle for construction and completion of the hotel, with clear repayment obligations tied to future operations. This is not plundering. This is development finance.

“Even before commencement of operations, the Edo investment in the Radisson project had already appreciated significantly, conservatively valued at over ₦65 billion, with further upside expected once operations begin. This is what happens when governments think strategically, attract private capital and invest in long-term economic assets.

READ ALSO: Benin Republic demons

“The insinuation that the project was “sold for peanuts” or gifted to cronies is false, malicious and defamatory. Edo State retained equity in the project. At no point did Mr Godwin Obaseki have any direct or indirect ownership interest in the hotel.”

Edo to petition EFCC

But Edo Commissioner for Information and Strategy, Kassim Afegbua, said the state government would formally submit a petition to the Economic and Financial Crimes Commission (EFCC) to bring Obaseki to book once investigations into various projects have been concluded.

Afegbua stated that the Okpebholo-led government was set to correct all the injustices, financial misadventure and happenstances of the Obaseki’s administration.

He assured that no amount of blackmail, name-calling and hate-mongering would stop the resolve to heal the wounds in the land.

His words, “Okpebholo is more interested in doing the needful to make our people happy, rather than pandering to please Godwin Obaseki and his cronies. Godwin Obaseki should return home and face the investigative panel if he has nothing to hide. Seeking refuge under the courts will not help his case.

“The Courts are desirous of accountability and transparency. The Courts also desire good governance that will enrich our people and make their lives better. Those who are guiltless should not be afraid of a probe and investigation. We may not possess the financial wizardry of hiding figures, but we know the devil in the details when we see them.

“The Radisson Hotel remains that of the Edo State government. Every kobo of Edo taxpayers’ money spent and invested in the project would be accounted for. You cannot use the Edo State government as a collateral entity to source N25b from the stock market, and invest the money for the benefit of your friends and cronies.”