Politics
Elumelu’s firm faults Ambode on contract termination
Afriland Properties Plc, the concessionary company that was awarded the contract for refurbishment of the Falomo Shopping Complex in Ikoyi, Lagos has denied any wrongdoing in the contract signed with the previous administration in the state under Babatunde Fashola.
Governor Akinwunmi Ambode had announced termination of the contract on Wednesday, stating, that only N50m was paid by the concessionaire for a 50-year lease of the property belonging to the govt, an agreement which according to him is not in the interest of the residents of the state.
But the company said that the partnership they entered with the Fashola led administration for the refurbishment was done transparently and in accordance to the rule of law.
Afriland is a member of the Heirs Holdings Group owned by Tony Elumelu, former chairman of the United Bank for Africa (UBA) Plc.
Afriland in a statement released Thursday, by Uzo Oshogwe, MD/CEO refuted strongly “the suggestion that it has engaged in any misconduct or that the transaction is in any way detrimental to the people and government of Lagos State.”
Read also: Forbes: Kalu, Elumelu lose membership card
The company stated, that “the contract was negotiated transparently and in accordance with best practice”, and that “Under the terms of the agreement, the SPV- Falomo Shopping Centre Development Company Ltd – was granted a concession to, amongst other things, develop, build, operate and maintain the Project on a Build, Operate and Transfer (BOT) basis. Afriland paid N50m (fifty million naira) to LSDPC as an expression of interest in the redevelopment project.
“The LSPDC will receive a 35% interest in the SPV for its land contribution and through this significant Equity Holding, will continue to receive significant ongoing value Afriland is obliged to fund the entirety of the development costs which is projected to exceed N30 billion without recourse to the Nigerian taxpayer.”
According to Oshogwe, “At a time when Nigeria urgently needs to diversify its economy and attract broad based foreign direct investment, the rumours we have identified do little to promote the National interest or create the business environment our country needs.”
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