The Edo State Government has accused the immediate-past administration, led by Governor Godwin Obaseki, of significant financial misconduct. This concerns the Radisson Hotel project in Benin City.
Prince Kassim Afegbua, the state’s Commissioner for Information and Strategy, confirmed this in a recent statement. He pledged to petition the Economic and Financial Crimes Commission (EFCC). This action will follow the conclusion of ongoing investigations.
However, the Peoples Democratic Party (PDP) has countered these claims. The party described the current administration as being driven by vendetta and propaganda. They argue it lacks purposeful leadership.
Allegations Against Obaseki’s Administration
Commissioner Afegbua further alleged financial irregularities by the Obaseki administration. He claimed the government sourced ₦25 billion from the stock market. This money was raised in the name of Edo State and invested in the Radisson Hotel project. However, 80 percent equity was later ceded to a private investor. The state retained only 20 percent ownership.
Afegbua stated that Edo State continues to service this ₦25 billion loan. This is done through an Irrevocable Standing Payment Order of approximately ₦385 million monthly. He also noted that there is no public record indicating the private investor injected any funds. This raises questions about their majority stake.
Furthermore, the commissioner alleged that the investor company was newly registered in May 2024. It reportedly has no known track record in the hospitality industry. He also highlighted that the acquisition of this majority equity stake did not follow a competitive bidding process.
Afegbua questioned the basis for the 80% equity. He asserted that no records exist showing the investor contributed funds to justify it. He reiterated that Edo State Government continues to pay ₦385 million monthly from the ₦25 billion loan.
He pointed out that the investor company was registered in May 2024. It lacks any prior history or success in the hospitality sector or related businesses.
The commissioner stressed the absence of competitive bidding for the significant 80% equity. He dismissed this approach as “financial wizardry” unique to Obaseki’s tenure. He firmly stated the current administration would not adopt such “dubious” financial practices.
Afegbua maintained that the Radisson Hotel fundamentally belongs to the Edo State government. He assured that every kobo of taxpayers’ money invested will be accounted for. He emphasized that the state cannot be used as collateral to source funds for the benefit of “friends and cronies.”
Current Administration’s Stance on Transparency
The commissioner also addressed claims linking the current administration to the Ossiomo Power Plant. He clarified that the state government is simply reducing its reliance on the facility. This is part of cost-cutting measures. They are adopting alternative power sources. These include solar energy and services from the Benin Electricity Distribution Company.
Afegbua affirmed Governor Okpebholo’s administration’s commitment to transparency. He highlighted its focus on prudent management of public funds. He starkly contrasted this with the “opaque financial transactions” he attributed to the previous government.
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