The government has agreed to an out of court settlement with Ace Hotels and Resorts limited (AHRL) towards the resolution of the legal suit on the City Hotel in Kumasi.
The Minister of Information, Nana Akomea who disclosed this in an interview said the Ghana Libyan Arab Holding Company (GLAHCO), has consented to offset the cost of settlement with part of the dividends from the Golden Tulip Hotel in Accra. He did not disclose the settlement cost to be paid but said between 1999 and 2002, the total amount of dividends earned by the government from Golden Tulip was $2,254,980.
Nana Akomea said the government was responsible for paying the settlement cost because the City Hotel property was used as part of government of Ghana equity in GLAHCO at a value of $3million. He explained that Cabinet, at a recent meeting agree to accept the terms of the settlement in order to end the litigation on the City Hotel property to enable the
Divestiture Implementation Committee (DIC) to finalise the transfer of the property to GLAHCO. Nana Akomea said the government planned to remove all the bottlenecks as soon as soon as possible to enable the rehabilitation of the hotel by GLAHCO to begin this year.
