Segun Amure
Resort International Limited (RIL) Monday explained how the Lagos State government impeded Dr. Wale Babalakin’s RIL firm from taking full possession of the old Federal Government Secretariat complex, Ikoyi, Lagos and put it into the use it was meant for.
RIL through its Group Corporate Affairs Manager, Mikali Mumuni narrated how the Lagos State Government came up with an argument that the complex ought to have been sold to Lagos State and not anybody else.
According to RIL, its intention after the purchase of the old Federal Government Secretariat with N7 billion in 2005 was to convert it into a housing estate to help bridge the huge housing deficit in Lagos State.
RIL added that the estate was meant to accommodate 480 families in Lagos State.
Narrating how Lagos State Government impeded the development of the old Secretariat, RIL submitted that Lagos State sent thugs to chase away workers of RIL when they moved to the site to commence construction.
In a clear demonstration of bad faith, the Lagos State Government (LASG) also made other ridiculous demands, including that RIL must obtain a fresh Certificate of Ownership (C of O) from it, irrespective of the documents issued by the federal government on the property.
Going further, LASG equally asked RIL to apply for the consent of the Lagos governor on the property and apply for a change of use. In addition, it asked RIL to apply for a development permit from the state government.
This also includes the demanded of 15 and 50 per cent of the cost of properties from buyers as an additional condition before work can commence
However, RIL, being a law abiding, had no alternative but to seek legal redress. RIL then declared Arbitration against the Federal Government for failing to ensure Lagos state gave approval in accordance with “No-Objection Approval” stipulated under Clause IV of the Development Lease Agreement (DLA) between the Federal Government and the company and it was awarded N50 billion as damages.
Background
The old Federal Government Secretariat located at Ikoyi Lagos State was the former Secretariat of Nigeria when her seat of power was in Lagos State.
However, upon moving the Capital to Abuja, the federal government decided to put it for sale, rather than leave it to rot away, it called for a bid on the complex and this was widely advertised nationally and internationally.
The bid process spanned almost two years with the Federal Government setting up about three committees to verify the bids. At the end of it all, RIL emerged the preferred bidder, beating Dangote Group and the others that participated in the exercise.
The tribunal, chaired by Fred Adeniyi Coker, an architect, supported by a leading legal practitioner, Mr. Yusuf Alli (SAN), and a former Attorney General of the Federation, Alhaji Abdullahi Ibrahim (SAN), ruling in favour of RIL, in a formal award letter dated December 3, 2015, declared that the Federal Government had failed in its obligations to Babalakin’s company under the Development Lease Agreement (DLA) entered into by both parties when RIL acquired the old secretariat complex under the sale of Federal Government’s assets in Lagos State.
The DLA, dated October 10, 2006, granted RIL a 99-year lease to redevelop the disused Federal Secretariat complex, Ikoyi, into 480 luxury apartments. RIL claimed at the arbitration that it had suffered damages totaling N88 billion as a result of the breach of the “No-Objection Approval” clause of the DLA by the Federal Government.
The Federal Government is yet to pay the cost awarded against it. The Lagos State Government has also refused to budge and the purpose for which Resort International Limited bought the old Federal Secretariat- providing decent housing for the teaming populace – remains precarious.