By Isiaka Mogaji
Wonders shall never end! I read the above-captioned article written by the Management of Harmony Holdings Limited, the investment management company of Kwara State Government, claimed that the immediate past senate president, Dr Bukola Saraki and governor Abdulfatah Ahmed’s administrations looted Kwara Hotel’s revenue for 16 years with zero investment.
Ordinarily, I would have ignored the antics of the writer and his sponsors, but for unsuspecting members of the public, who might have been fed with false information, I resolved to write this rejoinder.
Background Information
Before the administrations of Dr Bukola Saraki in 2003 and Alh. Abdulfatai Ahmed in 2011 in the State, the Kwara Hotel had gone through different management hands, including a technical committee headed by Sen. Shaaba Lafiagi.
In 1999, however, the Administration of late Governor Muhammad Alabi Lawal assumed the mantle of leadership in the State and not until 2002, he did not take a proactive approach to change the narratives in the tourism industry, when he engaged a new management consultant, Benny Geva to manage the Hotels.
The new management consultant (Benny Geva) is a subsidiary of Almog Engineering Limited, the Company that got the Contract for the Renovation work of the Hotel. On the 5th of August, 2002, the then State Ministry of Sports and Tourism signed the Agreement of Memorandum of Understanding (MoU) on behalf of the State Government and Benny Geva (Consultants)
The Consultant, as part of his marketing strategies, renamed the Kwara Hotel to Gate Way Hotel, though was later reverted to its original name (Kwara Hotels) through the instrument of the House in 2003. Even though, the Consultant was not making significant progress in terms of revenue generation.
In 2002/3 the Lawal-led administration awarded the Contract for the Renovation of the Hotel and the progress of work was not more than 35 per cent completed when Dr Bukola Saraki’s administration took over the leadership of the State. Be that as it may, one needs to commend the late Governor Muhammad Alabi Lawal for initiating the idea of giving this edifice a face-lift.
On May 29, 2003, when Saraki Administration came into power, the State House of Assembly received a petition to the effect that the Consultant managing the Hotel, Benny Geva, an Israelite, lacked the necessary professional skills and exposure in hotel management. It also alleged the Contractor handling the Renovation work of the Kwara Hotel of professional infractions.
Responding to the petition, the Kwara State House of Assembly, under the leadership of Rt. Hon. Isa Bio Ibrahim thoroughly investigated the matters through a 5-man Committee, headed by me. The House came up with far-reaching recommendations, which include:
(i) the Award of Contract for the Renovation of the Kwara Hotel by the administration of Muhammad Lawal was in the best interest of the State.
(ii) the House frown at the poor performance of the Consultant with a revenue monthly turnover of conservatively average of N2m thus, urged the Saraki Government to terminate the Management Agreement with the Consultant (Benny Geva) and a new competent management consultant be engaged.
Under CONSIDERATION of the MoU, item 2, the House frowned at the payment of USD 126,500.00 to the Consultant, which states, “In consideration of the satisfactory performance of the terms of this Agreement, the employer shall pay to the Consultant the sum of One Hundred and Twenty-Six Thousand, Five Hundred Dollars ($126,500:00) for the first six (6) months at the rate set out in the schedule to this Agreement and thereafter 12 % of the Net monthly revenue generated by the Hotels”. By the current dollar rate, this translates to #91.08m.
(iv) The House further noted that the Contractor did not commit any professional infractions in the handling of the Renovation work as alleged by the petitioner and thus, urged the Government to allow the Contractor, Almog Engineering Ltd., to continue with his work.
This is an opposition government that took over from the ruling ANPP government, yet didn’t show hatred or vendetta. All these recommendations were implemented accordingly.
Within a few months, the new Consultant raked in an average of N17 to N20million per month. This impressive revenue inflow was so encouraging to the extent that outstanding salaries, allowances and pensions of the staffers of the Hotels, including those staff that were redeployed from Arewa Hotel in Kaduna by Benny Geva were offset. The amount was in the figure of N250million. The actions of the Bukola Administration conformed with section 17 (2) sub-section (c) which says “Government actions shall be humane”.
In this circumstance, what comes to mind is why the present administration of Mallam Abdulrahman Abdulrazaq is crying foul over a paltry sum of #26m to settle the protesting staff of Kwara Hotels, over non-payment of their 7 months outstanding salaries. 7 months of outstanding salaries mean that the liability was not a carryover from the last administrations of Bukola and Ahmed as claimed by the APC ruling government in the State.
On the 20 bedrooms alleged to be tenable out of the 173-bedroom space Hotels. The reason for this is very simple. While the administrations of Bukola and Ahmed were busy providing enabling environment to attract both local and foreign investors to the State to improve the revenue generation of the Hotel, increase the State’s GDP, and enhance the socio-economic activities of the State, the administration of Abdulrahman Abdulrazaq is busy chasing out those political actors that helped him to the seat of power in 2019. It will be recalled that the last administration of Governor Abdulfatai Ahmed incorporated Harmony Holdings Limited, as an investment management company, usually published her annual statement of accounts giving annual profits of between 420m to 480m, of which Kwara Hotel alone contributed a significant proportion of this yearly profits. Why is it that the same Kwara Hotel is now operating at a loss since 2019 when APC took over the rein of government in Kwara? Why is it that the State government said to have been providing interventions and succour to the staff of the hotel now left them for a good seven (7) months without paying their salaries? These people are family men and women who will settle basic bills, pay children’s tuition fees, attend extended family and friends’ functions and even transport themselves to and from their working place.
Kwara has always been playing host to businessmen and women, especially from Islamic countries because of her peaceful environment during the duo of Bukola and Ahmed’s Administrations. All these visitors to the State usually lodged at Kwara Hotel. More pathetic is the demolition of the Mosque on the premises of the Hotel by the State Government, where guests could observe prayers. Many of these foreign guests have since stopped lodging in the hotel.
Similarly, considering the huge investment in the Hotel, Bukola Administration reactivated the Ariya Garden to the admiration of the guests of the Hotel and indeed, members of the public. This Ariya Garden was making a monthly revenue of N1.8m per week translating to #7.2m per month. Pls, ask them what has become of this Ariya Garden today under the APC government.
It will also be recalled that Kwara Hotel had always been used as a venue for major events of government since 2003. To reduce the pressure on the hotel and to avoid exposing the guests in the hotel to unnecessary security threats, Saraki decided to construct a modern event centre, known as Banquet Hall, located directly opposite Government House, GRA, Ilorin. Today, the APC under Abdulrahman Abdulrazaq has turned the Banquet Hall into a boxing ring where APC members throw chairs at one another to the extent that some members’ tooth were removed.
We need to educate members of the ruling party in the State that Hotel business is not a child’s play. It requires serious-minded people to think, plan, strategize and execute brilliant ideas to get value for the State investments, not to be heaping blame on the past administrations. People of sound minds should be brought to the government to assist Governor Abdulrazaq from meddling things together in the name of governance.
The author of this false article noted that the governor had concluded a plan to inject #2 billion into the Renovation of the Hotel, engage a management consultant and very soon send the proposal to the State House of Assembly for a public hearing. I was amused when I read this statement that Governor Abdulrazaq will send the proposal to the House.
Let me advise the State governor under the APC ruling government that the mere engagement of a management consultant does not require the input of the House. What the State government needs to do is to propose a Bill for Public Private Partnership which will serve as statutory legal backing in PPP.
The State House of Assembly should also rise to the challenge of exercising their constitutional mandates of carrying out effective oversight functions, especially on Ministries, Departments and Agencies of government to get into the root of where the problems line. I want to believe that the first arm of government in the State has been silent in exercising their core responsibilities as elected representatives.
Conclusion
It is very logical to conclude that the the immediate former senate president and governor Abdulfatai Ahmed tenures as governors of Kwara State witnessed tremendous development, including human capital development. Therefore, it can be inferred to say that it is irresponsible, arrogant and lack of decorum to accuse the duo of looting the Kwara Hotel revenue when the APC ruling government has nothing to show despite hundreds of billions of Naira that have accrued to the coffer of the State government.
I thank you for taking the time to go through these reactions.
*Hon. Magaji is former member Kwara State House of Assembly.
