The Benue Investment and Property Company Limited (BIPC) and the Benue State House of Assembly have commenced an inquiry into the lease of Sheraton Hotel Makurdi with the aim of taking over the ownership from lessee, King D Ventures.
Similarly, they’ve launched investigation into Lobi Cassava Processing Factory which has also remained in ruins.
The Group Managing Director of BIPC, Raymond Asemakaha, disclosed this while appearing before a judicial panel of inquiry chaired by retired Justice S. O. Itodo.
He told the panel that BSG through BIPC, owns majority (75 percent) shares of the hotel.
According to him, a detailed forensic audit of both companies shows troubling details about the lease and how both companies are grossly underutilised. 
He said that it was intriguing that BIPC, the majority shareholder of the property was not consulted before the lease agreement was signed.
Dr. Asemakaha further stated that there was never a board resolution showing that BIPC the majority shareholder signed on the lease, which is against corporate governance best practices.
He also requested that the Executive Council approval authorising the lease be presented for verification.
The GMD added that this administration is committed to restoring proper management structures to ensure the full potential of the hotel and the cassava processing factory.
Dr. Raymond further revealed that a visit to the facility show that the lessee lacks the technical and financial capabilities to revamp the hotel and optimise it’s full revenue potential as the facilities are rundown.
He also indicated that it was a misnomer for a lessee to be given the certificate of occupancy (CoO) on a leased property.
The BIPC CEO said investigation also showed that the file on the Sheraton Hotel is missing and unaccounted for.
“The state is loosing income as the hotel isn’t generating significant revenues, including taxes revenues” Dr. Raymond stated.
He explained that the decision to stop the further degradation of the hotel and cassava plant is purely economic as the state cannot continue to loose revenues and the opportunity to create new jobs for the unemployed.
“It’s worthy to note that Benue has on several occasions lost the opportunity to host bespoke national and international events because of lack of five-star conference facilities. Meanwhile, we have a facility that if revamped and modernise, can host premier events. It is unacceptable and something has to be done urgently to arrest the ugly situation” he emphasized.
On the cassava plant the BIPC MD revealed that it has remained moribond and hasn’t been into production adding that it is economic sabotage.
“From 2010 till date, the companies haven’t paid significant taxes and haven’t created new jobs yet the lessee has kept hold on the facilities. This is akin to economic sabotage on Benue state. We need the companies to create new jobs and grow Benue revenue” he concluded.
Responding to questions from the panel, the representative of King D Ventures, John Amali, confirmed that the hotel is underutilized.
He further indicated that they have been unable to operate optimally due to liability issues, alleged interference from the previous administration and encroachment on parts of the premises by unidentified individuals.
Members of the 10th Benue State Assembly present at the session lamented the underutilization of the hotel calling for urgent actions towards recovering the facility.
In his remarks, Justice Itodo urged all parties to view the meeting as an opportunity for constructive engagement and to explore practical solutions towards resolving any infringements surrounding the lease agreement and maximise the potentials of the property.
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