Govt has No Interest In Hotel Business

Legalities stalling development of Ambassador, City and Meridian Hotels

Government on Tuesday indicated that it had no stated interest in any hotel in the country, saying the Ambassador, City and Meridian hotels could not be developed unless legal disputes on them were resolved.

Nana Akomea, Out-going Deputy Minister of Tourism, told the media when he and Mr Kwamena Bartels, Out-going Acting Minister of the Sector, took their turn at the Meet-The-Press Series in Accra.

He said government had no hand in developing the three hotels, which belonged to the defunct State Hotels and have been lying idle for more than 10 years.

Mr Akomea was answering questions on the government's position on developing the three landmarks as well as the Accra International Conference Centre (AICC) Hotel to international standards.

He explained that the Meridian Hotel had been put on divestiture and sold.

"However, the company which bought the hotel says it has no money to continue as was previously envisaged."

Mr Akomea said the Ambassador and City hotels were also locked up in the courts and could not be transformed into the first class international hotels anticipated when they were divested more than 10 years ago.

"A Chief bought the City Hotel from the Divestiture Implementation Committee (DIC) and later another group joined him to develop the hotel. The new group, however, changed their minds and went behind the Chief to buy it themselves.

"The government then took their money and gave the hotel to the new buyers. Today the case is in court and nothing can be done until the case is finally resolved," Mr Akomea said.

The Ambassador Hotel, once regarded as the biggest hotel in West Africa "is also bugged down by legalities."

Mr Akomea said the divestiture of the Ambassador Hotel was fraught with difficulties, adding that, in 1996 the government went into a shareholding agreement with a Palestinian group, in which the government of Ghana used the land and building as equity.

"Without reference to the Ghana government, the Palestinians offloaded their part and sold it to a third group.

"The third group got value for 60 per cent of the property from a sales and purchase agreement with the Social Security and National Insurance Trust (SSNIT) after which they used the money - 7 million dollars- to pay the Palestinians."

Mr Bartels also said, "sadly the Palestinians did not pay anything for the whole transaction but benefited from the deal."

He said the DIC and Ghana-Libyan Holding Company, which had links with the Palestinians tried to settle the matter out of court, but the third group objected.

Mr Akomea told the Journalists that government had set up a body comprising representatives of the National Security Council to investigate and report on the matter.

"What I know is that the Council has completed its investigations and will soon present its report to government. It is when the white paper is out that we would know exactly what government intends to do."

He said currently, numerous investors, "including some from Sweden and Switzerland," had expressed interest in developing the Ambassador hotel especially in view of its location, sheer size and potential of meeting the required standards in international hospitality.

Commenting on the AICC Hotel, he said two companies including Taysec were anxious to build a hotel next to the Conference Centre.

"Taysec has made an offer for the deal. But we are yet to find out which of the two is most suited for the project, he said.

The former Vice President, Professor John Evans Atta Mills in 1999 cut the sod for work to begin on a 240-room multi-million dollar hotel to be built by Palace Hotel of Saudi Arabia at the Racecourse.

"The necessary money for this project never came," Mr Akomea said.

At the moment, Hilton International has expressed "strong interest" in putting up the hotel by the AICC. "They have done their recce, valuation and all, which has seen Cabinet approval and will very soon come up with papers for signing for the commencement of the project."

The Management of the hotel would then be responsible for the AICC and will have to go out and market the Centre internationally."