Controversy trails purchase, concession of N2.8b Transcorp hotel in C’River

The purchase and proposed concession of N2.8 billion Transcorp Hotel by the Cross River State government is causing ripples in the state. The state had, under the administration of Donald Duke, sold the hotel to Transcorp at N250 million…

The purchase and proposed concession of N2.8 billion Transcorp Hotel by the Cross River State government is causing ripples in the state. The state had, under the administration of Donald Duke, sold the hotel to Transcorp at N250 million, but recently, under the administration of Governor Ben Ayade, repurchased the 230 rooms hotel at N2. 8 billion and has put the hotel on sale again. The development is currently attracting criticism from Cross Riverians.

The state government, in an advertorial in some national dailies recently, and in keeping with Federal Government’s National Development Plan (NDP) of 2021-2025, through the Ministry of Industries, in collaboration with the Public Private Partnership (PPP) Council and the Bureau of Public Private Partnership (BPPP), is engaging open competitive call for expression of interest for the concession of some of its industries and asset by the public, which include, Cross River Bagging Factory, Calabar; Groundnut Oil Mills, Bekwarra; Maize Flour Factory, Obanliku; Fresh Fruits Factory, Obanliku, and Transcorp Hotel, Calabar.

The document shows the concession “is in line with state government’s strategic and integrated infrastructure plan to promote infrastructure development, attract investment, creates employment, increase internally generated revenue and stimulate its economy. The concession of the aforementioned assets has been approved by the state executive council as eligible for PPP.”

However, this arrangement has not gone well with some Cross Riverians, who are saying that the concession plan is targeted at Transcorp Hotel for the interest of some top persons in government, and should be rejected.

A statement made available to The Guardian, yesterday, by Movement For Total Liberation Of Cross River State said the government had earlier given the impression that the state was to buy the hotel from Transcorp, and was meant to be bought by gradual payment.

He added: “But when it got to the publication of properties of the state government to be sold, you would clearly see that it has already been repurchased.”

The statement, which was signed by the Chairman, Ase Adung, said: “At what month was it repurchased? What was the process of repurchase? How did state government pay N2.8 billion as the worth of that property? There is a lot of criminality and fraud in this aspect.”