THE SEALING OF ABIA HOTEL IN UMUAHIA ABIA GOVT EXPLAINS

THE SEALING OF ABIA HOTEL IN UMUAHIA ABIA GOVT EXPLAINS

David Maduako –Umuahia

The Abia State government have explained why she sealed Abia hotel in Umuahia.

Briefing news men on Monday 1st of December 2025 on the above Issue , the Commissioner for information Prince Okey Kanu said the former management of the hotel had intent to swindle the state government twisting of facts and terms of agreement reached with government’.

According to the Commissioner ,, the Abía State government noticed that the hotel was not progressing as expected and the premises was in a shabby state not befitting a state owned hotel .So the state government decided to reacquire the property to give it a face lift that it requires . This led to negociations with the Investor managing the hotel .

The Investor he said produced an evaluation report prepared by a law firm Jide Tiwo & co and other documents and both parties settled for payment of 450 million naira as compensation to the investor. Having made
the payment government’ decided to seal off the hotel for work to full commence on the place .

However the Investor began to complain of irregularities in the agreement he duly reached with the government , to a point of making denials of payment .

Based on the Investor’s complain and denials against the state government ,
the Commissioner said he has come to make some important clarifications on the MOU state government reached with the Investor .

First he stated that government’ have no obligation to pay the investor any money because the Investor defaulted in virtually all the agreements reached with the previous government’ which among others include refusal to upgrade the hotel to a three star hotel , refusal to keep the hotel clean ,refusal to pay 3 million Naira annually to government , among others .

Despite all these anomalies, government’ still went ahead to pay him 450 million Naira which was paid into his key stone bank account .”I just want to make it clear that agreement was reached with Investor and payment was made to him , so all his claim in the press are false , the commissioner stated .
End