Naijajingles
Abia State Government has revoked the Certificate of Occupancy and retaken possession of Abia Hotels, Umuahia, from a private company, Investment Guarantee Limited which had leased the facility for a 25-year period.
The State government said that its action was because of the company’s alleged failure to fulfill the terms and conditions of the Development Lease Agreement it signed with the State government in 2013.
The revocation was announced by the Chief Press Secretary to Governor Alex Otti, Ukoha Njoku Ukoha on Sunday in an early morning press statement.
According to the statement, “In the development lease agreement, Investment Guarantee Limited committed to upgrade and redevelop the Hotel to a 3-Star Protea- Standard Hotel and manage it for 25 years but failed to upgrade and redevelop the Hotel to the agreed standards after 12 years.”
The State government also accused the company of allegedly breaching other terms and conditions of the development lease agreement.
Abia government, however, said that it paid compensation to the company to cover the costs it incurred in the development of the hotel complex.
