BIPC ENGAGES NEXIM BANK TO AVERT SALE OF BENUE HOTEL, PROPOSES FOUR-POINT RESOLUTION TO NEXIM BANK

The Management of the Benue Investment and Property Company Limited (BIPC) has held discussions with the Nigerian Export-Import Bank (NEXIM Bank) on moves to recover and stop NEXIM BANK from selling Benue Hotels Limited.

Benue Hotels Limited was leased to Luxurium Leisure Services in 2012, following which the company obtained a N488 Million Naira facility at first instance and another N630 million Naira all from NEXIM Bank for the remodelling and development of the hotel.

The Group Managing Director of BIPC, Dr. Raymond Asemakaha, CFA, expressed concern over the circumstances surrounding the lease agreement and subsequent release of a Certificate of Occupancy to Luxurium Leisure Services, describing the process as administrative fraud.

The GMD said no exco approval nor board resolution were given even though Benue State government holds a 75% majority share via the Benue Investment and Property Company Limited, BIPC and Nigerian Hotels Limited helds minority shares of 25% percent.

Dr. Asemakaha also disclosed that during the loan process, Nexim Bank failed to sought for owners signature, approvals, owners board resolution, search report on the collateral thereby failing in carrying out it's due diligence obtainable in financial dealings.

He stressed that the state government would not allow the property to be sold, emphasizing the importance of protecting government assets for the benefit of the people of Benue.

The Group Managing Director presented four proposals on behalf of the state government

to Nexim Bank for consideration including expiration of the lease by next year, payment of 48% of the loan to NEXIM Bank to recover the hotel for not doing their due diligence, share the risk associated with the outstanding facility on a 50:50 basis as both parties must bear loses on the transactions.

Asemakaha also raised concerns over the utilisation of the funds earlier obtained by Luxurium Leisure Services, promising that BIPC would investigating how the loans facility were expended.

According to him, information presented by the manager of Luxurium Leisure Services indicated that only one facility and a swimming pool were added to the hotel, while most of the other works carried out amounted to minor renovations.

He reiterated the vision of His Excellency, Rev. Fr. Dr. Hyacinth Iormem Alia, the Executive Governor of Benue State to recover all properties of the state, warning all person (s) with government assets to render them for the benefit of the state.

Responding, the Chief Risk & Compliance Officer of NEXIM Bank, Umoru Gubio, said the bank would carefully consider the proposals presented by the Benue State Government and communicate its position.

The meeting was attended by the former Speaker of the Benue State House of Assembly, Rt. Hon. David Iorhemba who was appointed as a receiver in respect of the hotel alongside senior management staff of BIPC and officials of NEXIM Bank.