The Edo State chapter of the Peoples Democratic Party has defended former governor Godwin Obaseki over claims that the state incurred a N25 billion debt on the Radisson Hotel project.
The party faulted comments credited to the Edo State Commissioner for Information and Strategy, Kassim Afegbua, who alleged that the hotel project left the state with a N25 billion liability.
The controversy followed the decision of the Edo State House of Assembly to probe the Radisson Hotel project, which was initiated under Obaseki’s administration. Afegbua had claimed that although Obaseki publicly mentioned only N2 billion as the state’s investment, documents showed that N25 billion was raised from the stock market and was being repaid by the state government.
He also alleged that the current administration is paying about N385 million monthly from the state’s Internally Generated Revenue through an irrevocable payment order tied to the N25 billion.
However, reacting on Saturday, the PDP, through its Publicity Secretary, Dan Osa-Ogbegie, dismissed the claims and accused the administration of Governor Monday Okpebholo of targeting projects linked to Obaseki.
Osa-Ogbegie said, “We have watched the reckless onslaught against many of the projects Obaseki did or started. Now, the Radisson Hotel project has become the latest victim of this administration’s politics of destruction. Kassim Afegbua’s statement on the Radisson Hotel project is a cocktail of ignorance and mischief.”
He argued that the former government followed standard global practices in financing large projects.
“Public-Private Partnerships, Special Purpose Vehicles, equity contributions, project-finance loans and asset-backed repayment structures are not crimes. They are the language of modern infrastructure development across the world,” he said.
According to him, Edo State’s actual cash contribution to the project was N2 billion, which he described as seed equity meant to attract private investors.
“For the avoidance of doubt, the Radisson Hotel project was structured as a Public-Private Partnership. Edo State’s N2 billion contribution was seed equity injected to de-risk the project and attract credible private capital,” Osa-Ogbegie stated.
He added that other funds mentioned by the state government were loans given to a Special Purpose Vehicle set up for the hotel, with clear repayment plans tied to the hotel’s future operations.
“This is not a plunder; this is development finance,” he said.
The PDP further claimed that the state’s investment had already grown in value.
“Even before commencement of operations, the Edo investment in the Radisson project had already appreciated significantly, conservatively valued at over N65 billion, with further upside expected once operations began,” Osa-Ogbegie said.
He also rejected claims that the hotel was secretly handed over to private interests.
“The insinuation that the project was ‘sold for peanuts’ or gifted to cronies is false, malicious and defamatory. Edo State retained equity in the project. At no point did Godwin Obaseki have any direct or indirect ownership interest in the hotel,” he added.
Obaseki had earlier denied any wrongdoing and described the probe as politically motivated, as the disagreement between his administration and the current government continues to deepen over the project.
