TANZANIA STEPPING UP CRACKDOWN ON CRITICS AFTER RECENT POLLS, UN WARNS. (PHOTO).
Security operatives have sealed off the premises of Abia Hotels on Finbers Road in Umuahia, the Abia State capital, following the state government's revocation of the Certificate of Occupancy (C-of-O) granted to private lessee Investment Guarantee Limited.
The action comes one day after the administration of Governor Alex Otti announced the takeover of the facility, citing the company's alleged failure to honour a 2013 Development Lease Agreement.
A visit to the hotel on Monday revealed armed security personnel stationed at the entrance, with a prominent government notice pasted on the main gate declaring the property sealed and repossessed by the Abia State Government.
A government source, speaking anonymously to reporters, confirmed that the security deployment was to maintain law and order during the transition.
In a statement issued on Sunday by the Chief Press Secretary to the Governor, Ukoha Njoku Ukoha, the state accused Investment Guarantee Limited of breaching the 25-year lease terms. Under the 2013 agreement, the company was obligated to upgrade and redevelop the hotel to a 3-Star Protea standard and manage it accordingly.
"After 12 years, the company has failed to upgrade and redevelop the hotel to the agreed standards and is in breach of other terms and conditions," the statement read.
Despite the revocation, the government emphasised its investor-friendly stance, noting that it had paid compensation to Investment Guarantee Limited for costs incurred during partial development works.
No official response has been issued by representatives of Investment Guarantee Limited as of press time.
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