Mpiani & Tarzan Duck On Largus Hotel Albatross

If there is anything Kwadwo Mpiani and Dr. Wereko-Brobby of Ghana@50 fame share in common, it is the albatross of the ¢10 billion Largus Fort Hotel project and the arrogance of the two in-laws.

Whilst Dr. Charles Wereko-Brobby steered clear of mentioning the project, which recorded a ¢2.4 billion unpaid rent ($240,000) under the agreement, his boss and brother-in-law Mr. Kwadwo Mpiani, also ducked from mentioning the project in his memo presented to the Commission of Inquiry into the Ghana@50 activities. The Largus Fort Hotel was leased by the Ghana@50 Secretariat represented by Dr. Wereko-Brobby for two years at $360,000 per annum, even though when he appeared before the Commission he sought to create the impression that he Ghana@50 Secretariat was not a legal entity.

If the Ghana@50 Secretariat was not a legal entity, why did they enter into legal agreements such as opening bank accounts and signing lease agreements as well as operating a hotel business, Justice Duose, Chairman of the commission wondered during question time. Dr. Wereko0Brobby had told the commission also that the Secretariat was not a legal entity and denied responsibility for some of the things that took place during the celebrations, especially in the regions.

The managing Director of Largus Fort Hotel Limited, Mr. Joe Ofori, had told the Commission on August 4, 2009 that the Secretariat had leased the hotel for two years but defaulted in paying the rent for the second year, as required under the lease, leaving behind $240,000 as unpaid rent for the second year.

Documents in the possession of the Enquirer suggests that even though the celebrations were to last for one year, Dr. Wereko-Brobby decided to use the hotel for the Celebrations, the AU summit and the CAN 2008, after which he intended to operate it as a commercial hotel to the public.

The Ghana@50 Secretariat, handed over the management of the leased hotel to United African Management, a company formed by a cosmetic Manufacturing company, within days of the lease. Mr. Sandy Osei Agyemang, former Chairman of the Ghana Athletics Association was put at the head of the management of the hotel.

Osei Agyemang admitted before the Commission that he had no previous experience in hotel management, but insisted that they could not meet their set target, otherwise they would have paid off their indebtedness. Joe Ofori had testified that during the tenure of the agreement, Largus Fort made brisk business, renting out rooms at $50 to $70 and yet refused to pay him.

Meanwhile, a Consultant’s report on the project had projected that with even much lower room charges, Largus Fort Hotel was supposed to make profit. Testifying before the Commission last Friday, October 23, 2009 Mr. Kwadwo Mpiani identified with the financial statement presented by the Commission by Dr. Wereko-Brobby, but would not state whether it was prepared by a professional accountant or not.

When asked why the transaction involving Largus Fort Hotel had not been captured in name under the accounts, Counsel for Dr. Wereko-Brobby, conceded but told the commission the expenditure had been captured under other expenses.

Meanwhile, The Enquirer has sighted a financial assessment of the transaction, which suggests that daily room rates would range from $10 to $60. The document assessed that the lower the daily rate charged, the more patronage it would attract.

The report concluded that running the hotel would be profitable. Largus Fort was originally a hostel, which the Ghana@50 Secretariat got upgraded into a hotel for the two-year lease, which according to Mr. Mpiani, was to accommodate lower level staff of dignitaries who attended the Ghana@50 celebration and other major events around the time. Mr. Ofori had told the Commission that the Secretariat’s conditions included the installation of air conditioners, television sets with brackets, as well as the provision of Fridges, and broadband internet services in all rooms and common facilities.

He told the Commission that the Secretariat asked him to set apart one floor of the hotel for single occupancy, to be equipped with ‘queen-size beds in the rooms.’ According to him he was given less than a month to provide these facilities and therefore had to secure a bank loan for that purpose.

Mr. Ofori further told the Commission that he had to buy 115 split air-conditioners, 106 television sets and also at the request of the Secretariat, they had to discard 39 single beds and replace them with queen-size beds. He said I the second week of August 2008, United African Management packed out of his hotel, leaving behind huge bills, with a letter to the Ghana @50 Secretariat, indicating their inability to pay the advance rent as required by the landlords.

Denying a suggestion by Mr. Akoto Ampaw that he had sold the hotel, he said he had also not used the hotel because there was so much damage to it after the departure of the agents of the Secretariat and it was still under renovation.

“My Lord that is absolutely untrue, there have been so many visitors to the hotel, some expressing interest to buy it,” he said in response to a suggestion that he had either sold or attempted to sell the hotel. “You are speaking as a lawyer…” “How does a lawyer speak,” Mr. Ofori had retorted to the above.