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From Okey Sampson, Umuahia
The Abia State government has revoked the Certificate of Occupancy granted to an investor, Investment Guarantee Limited, in respect of Abia Hotels, Umuahia, and cancelled the agreement it reached with the company to manage the hotel for a certain number of years.
A government statement said the action was taken due to the inability of the lessee to fulfil the terms and conditions of the Development Lease Agreement signed with the State Government in 2013.
It was gathered that in the development lease agreement, Investment Guarantee Limited was to upgrade and redevelop the hotel to a 3-star Protea Standard Hotel and manage it for 25 years.
However, according to the statement, the company failed to upgrade and redevelop the hotel to the agreed standards after 12 years and is in breach of other terms and conditions of the development lease agreement with the Abia State Government, prompting the State Government to revoke the agreement.
The government said it offered and paid compensation to the company to cover costs incurred in the development of the hotel complex.
“The gesture was aimed at supporting the investor and to enable the state government to utilise the facility for its intended purpose.
“The Abia State government remains committed to creating a conducive environment for businesses to thrive while ensuring that the assets of the State are utilised in the best interest of its citizens,” the statement added.
