JAK directs probe into "JJ hotel"

BNI GRILLS MINISTERS: Over Rawlings Hotel

Pier Hotel, the exquisite Ghanaian lodge that was cruelly demolished eight years ago on the orders of former President Jerry John Rawlings, and for which the state is being asked to pay compensation, has received presidential attention, with a directive to the Bureau of National Investigations (BNI) to look into the matter.

President John Agyekum Kufuor, acting on media reports, asked the BNI to probe the hotel conundrum to unravel the mystery surrounding a suspected $7million extra claims over the 1999 illegal demolition.


With the excuse that the Pier Hotel was built on waterways, the National Democratic Congress (NDC) administration, in 1999, called in the military to pull down the hotel.


However it was not until the New Patriotic Party (NPP) had taken over the reins of government that the owner of the hotel, Alhaji Yusif Ibrahim dragged the Accra Metropolitan Assembly (AMA) to court, asking for compensation.


Daily Guide was reliably informed that four cabinet ministers, including the Attorney General and Minister of Justice, Joe Ghartey, have already submitted statements to the BNI on the matter.


The latest twist in the eight-year old tussle is that the Accra Metropolitan Assembly (AMA) had also washed its hands off a purported $12m settlement with the owners, stressing that the claim emanated from unknown sources.

In a letter to the Attorney-General and Minister of Justice, the Metropolitan Chief Executive, Mr. Stanley Nii Adjiri Blankson, contended that the figure officially in contention had been inflated by about $7m, and bluntly said the claim should be disregarded The letter, dated February 1, 2007, stated:


“I wish to state emphatically that my attention has never been drawn to an attached settlement proposal in which the Assembly offered to pay $12m to the plaintiff in the above-cited case as terms of settlement”.


According to the Accra Mayor, the only amount under discussion in official circles, and which remained pending as indicated in the plaintiff’s writ of summons since 2001 was $5,107,075.29.


“The purported attachment in which the Assembly offered $12 million to the plaintiff does not emanate from the Accra Metropolitan Assembly and should be disregarded absolutely,” he directed.


Hon. Adjiri Blankson emphatically noted that whatever documents he must have signed with reference to the claims, was done “with the knowledge and belief that the amount in contention was $5,107,075.29, and not $12million”.

The issue of Pier Hotel was revived recently when Francis Kojo-Smith & Co, solicitors for AMA, reportedly demanded $12m from the government of Ghana, prompting the Bureau of National Investigations (BNI) to wade into the cause of the sudden inflation of the figure.


However, nearly all documents cited by Daily Guide on the matter indicated that from September 12, 1999 when the hotel was demolished, the plaintiffs consistently demanded a little over $5m.


For instance the Ministry of Defence, on February 2, 2007, sought the advice of the Attorney-General and Minister of Justice, on the matter, quoting its official figure.


The letter, with reference number HA.153/719/04 and signed by E. F. Ofosu-Apeah, Chief Director MOD, stated: “As a follow-up to our conversation two weeks ago on the suit concerning the demolition of the hotel and the plaintiff’s claim of $5,107,075.29, the minister is still depending very much on your advice”.


Interestingly, the solicitors for AMA, in their communication to the Defence Minister on 6th September, 2006, also seemed to have agreed on the actual figure in contention.

The letter, with reference number FJS/AMA/MOD/02/06 and signed by Mr Kojo-Smith, said among other things: “This is a $5 million suit at the Accra Fast Track Court involving the demolition of the Pier Hotel at the Kotoka Airport Residential Area by elements of the Ghana Armed Forces in 1999, during the administration of the NDC Government. We hope that this matter will exercise your urgent attention in view of the time it has taken to resolve the issue”.


All these aside, a Fast Track High Court ruling on the matter on November 19, 2001, in which Mrs. Justice Agnes Dordzie found the AMA culpable for the actions of the 48 Engineer Regiment, quoted the same sum.


Page two of the ruling noted: “The plaintiffs in this case are seeking for an order of this court declaring that the demolition of Pier Hotel carried out by the defendants at plot No R2 Airport, Accra on 12th of April 1999 was illegal and constituted a trespass and an unlawful interference with the plaintiff’s civil and constitutional rights.


The plaintiffs are further claiming special damages of $5,107,075.29 and general damages”.


As to how another document, directing the Ministry of Finance to consider the settlement, came up with $12m, is a matter now under investigation by the BNI.

Incidentally, nearly all the stakeholders are hesitant to compel the already over-burdened Ghanaian taxpayer to cough out the $12 million, more so when the figure seems controversial.