Developer Of Demolished Hotel Demands N10bn Compensation From Kano Govt
Lamash Properties Limited, the developers of Daula Hotel, has announced its intention to sue the Kano State Government, demanding a compensation of N10 billion for the demolition of their properties.
In a statement to reporters on Sunday, the company’s director of sales, Aliyu Abubakar, criticized the government for its disregard of the globally accepted principle of fair hearing.
The Kano State Government carried out the demolition of at least three properties over the weekend, alleging that they were illegally sold by the previous administration. The police commissioner of the state, Muhammed Gumel, supervised the demolitions.
Among the demolished structures was Daula Hotel, a three-star hotel reconstructed by the Ganduje administration under a Public Private Partnership (PPP) arrangement.
Lamash Properties Limited won the bid and signed a PPP contract agreement with the Kano State Government to redevelop the old Daula Hotel. The hotel, consisting of 90 rooms, was completed and handed over to the state government in a commissioning ceremony on May 27, 2023.
Aliyu Abubakar expressed shock and disappointment when he received a call in the early hours of Sunday, June 4, informing him that government officials led by the new governor, Abba Kabir Yusuf, had mobilized bulldozers to the project site and were demolishing all the buildings, including the completed Daula Boutique Hotel, the partially completed commercial area, and the ongoing residential apartments.
He emphasized that the demolition was a detrimental act, especially in a time of financial constraints and high unemployment rates.
The Daula Boutique Hotel, owned by the state government, was expected to generate substantial revenue and contribute to employment opportunities in the state.
Lamash Properties Limited believes that the government’s actions violated the principle of fair hearing, as they were not notified or given an opportunity to provide clarification on the project.
Abubakar revealed that their legal team has been instructed to pursue legal action against the Kano State Government, seeking compensation of N10 billion, which represents the amount already invested in the project.
The company also aims to prevent further negative actions by the state government that could harm their interests under the PPP contract agreement.
Lamash Properties Limited urged the public in Kano state and beyond to understand the nature of their business and the implications of the government’s actions on potential investors.
They emphasized that this situation could deter other investors from contributing to the state’s economy, affecting employment opportunities, wealth distribution, and urban development.
