Abia govt counters investor’s claims on revocation of Abia hotels MoU * Says investor was paid N450m compensation, breached MoU with govt

Abia govt counters investor’s claims on revocation of Abia hotels MoU

* Says investor was paid N450m compensation, breached MoU with govt

By Steve Oko

Abia State Government has countered claims by former Umuahia South Local Government boss, and investor at the Abia Hotels limited, Umuahia, Mr R andy Ukanwoko, that his agreement with Government was revoked and the facility demolished because he allowed the All Progressives Congress, APC, access to the premises for a rally.

Government dismissed the narrative as “misleading, petty, laughable and a belated attempt by the investor to blackmail the Government”.

Commissioner for Information, Prince Okey Kanu, stated this at a joint press conference with the General Manager, Umuahia Capital Development Authority, UCDA, Mr Kingsley Agomuo; and the Special Adviser to the Governor on Media and Publicity, Mr Ferdinand Ekeoma.

The Commissioner explained that contrary to claims by the investor, Government fully compensated him before taking lawful possession of the property.

He said that the misleading narrative in the social media was a mischievous attempt by the investor to misrepresented the State Government and whip up sentiments.

Responding to a question that UCDA boss, Mr Agomuo, said the investor was paid N450 million compensation in October after he had submitted his evaluation claims.

He said that Government had held series of meetings and negotiations with him since 2024 when Government decided to take back the property following the failure of the investor to keep to the terms of the Memorandum of Understanding it had with Government in 2013 when took over the facility.

Agomuo said the investor was supposed to be making annual returns of N3 million to Government but never remitted anything, adding that he was also to develop the facility to a full three -star hotel but never did so.

Displaying a copy of the MoU, the UCDA boss, accused the investor of subletting the facility to other investors who erected structures without approvals by relevant Government agencies, in violation of the MoU.

Agomuo further explained that the investor had three weeks grace to vacate the facility after he was fully paid off in October.

He expressed dismay that the investor could resort to blackmail after shortchanging Government for years and was yet treated with compassion.

” That place was not a virgin land; there were facilities on it before he took over. From the MoU, it’s quite clear that before he upgrades or develop any part of that structure, he should get approval clearly stated from relevant government agencies. But he breached all of that.”

The UCDA boss also accused the investor of an attempt to outsmart other investors he brought into the facility by telling them Government did not pay any compensation whereas he had even provided two different bank details for the payment if not that Government insisted on paying into a single account.

“He kept telling them that there was no compensation. He did not even tell them that he has collected the money. And he was even telling government not to let people know the amount. We wouldn’t have bothered going public if not that he resorted to cheap blackmail after shortchanging Government for years. That’s not fair, and no state can develop this way. So, we need to set the record clear and let people know the truth”.

Contributing, Ekeoma said the claims of witch,-hunt by the investor did not hold water because he was the one who provided his bank details for payment of compensation after months of negations.

He expressed disappointment that people expected to behave honourably could choose to misinform the public when in fact, they should be apologetic.

Ekeoma said:”He breached every single term contained in the MoU. That alone is an affront to Government. How can he expect us to tolerate that. Maybe he wants the old order to continue but we are in New Abia where things must be done the right way.

” He doesn’t even deserve any compensation because he was the one who breached the agreement with government but because the Gov. Alex Otti-led administration has human face, Government decided to let go and compensate him and reclaim the facility for proper development. He should be grateful”.

“That negotiation was not done because he was right. But it was done because this is a government that believes in empathy.

“The government that has compassion. It has also treated other investors like that because this government doesn’t want to dwell in the past. It wants to move forward. It’s not a government of vendetta. It’s only Gov. Alex Otti that can be this compassionate”.