Etorobong Udo-oworen
The Akwa Ibom State Government (AKSG) has recently come under intense scrutiny for its dubious business practices and questionable ethics. The most glaring example of this is the unlawful termination of the Management Services Agreement for the Ibom Hotel and Golf Resort with the Icon Group, a reputable Pan-African hotel chain. This case has revealed a pattern of sleazy business practices that undermine investor confidence and tarnish the state’s reputation as a reliable and ethical destination for investment.
The Icon Group, known for its high standards in hotel management, was abruptly and unlawfully ousted from its role managing the Ibom Hotel and Golf Resort. This termination was not only a breach of contract but also a blatant display of bad faith. To make matters worse, AKSG replaced the Icon Group with a company that was hastily incorporated just three weeks prior to the termination. This new company, owned by the former Chief Executive Officer of the Icon Group’s Nigerian subsidiary, has no proven track record in hotel management, raising serious questions about the legitimacy and motivations behind this decision.
In a desperate attempt to conceal its unethical actions, AKSG engaged in an elaborate cover-up. Despite the termination, the state continued to use the Icon Group’s brand on its marketing and social media platforms, misleading the public into believing that the Icon Group was still managing the hotel. This deceit was only exposed after the Icon Group issued a caveat emptor notice, making it clear that there were numerous court cases pending regarding the termination of the Management Services Agreement.
AKSG’s unethical behavior did not stop at deceit. The state coerced key expatriate personnel from the Icon Group, who were seconded from the head office, to resign and re-engage with the new management company. This manipulation was a calculated move to create the false impression that the Icon Group was still involved in managing the hotel. In reality, the Icon Group had been forcibly removed, stripped of its contractual rights and responsibilities.
These sleazy business practices have far-reaching implications. Investor confidence is heavily dependent on the perceived reliability and integrity of a region’s business environment. AKSG’s actions have severely damaged its credibility, sending a clear message to both current and potential investors that the state cannot be trusted to honor its commitments. This loss of trust will inevitably lead to a decline in Foreign Direct Investment (FDI), stifling economic growth and development.
The long-term consequences of AKSG’s unethical behavior are dire. The state risks economic isolation as investors seek more stable and trustworthy environments for their capital. The potential legal battles stemming from the unlawful termination could result in significant financial liabilities for the state, further draining public resources. Additionally, the erosion of investor trust will hinder future efforts to attract and retain investment, perpetuating a cycle of economic stagnation and missed opportunities.
To mitigate the damage and restore its reputation, AKSG must undertake immediate and comprehensive reforms:
1. Resolve Disputes Fairly: Engage in good faith negotiations with the Icon Group to resolve the dispute amicably and restore legal integrity.
2. Strengthen Legal Protections: Reinforce legal frameworks to protect foreign investments and ensure that all contractual obligations are honored.
3. Promote Transparency: Uphold principles of transparency, accountability, and the rule of law to create a stable and predictable business environment.
4. Rebuild Trust: Launch a public relations campaign aimed at rebuilding trust with the international investing community and demonstrating a commitment to ethical business practices.
The sleazy business practices and questionable ethics of the Akwa Ibom State Government have not only tarnished its reputation but also jeopardized its economic future. The unlawful termination of the Icon Group’s management agreement and the subsequent cover-up have exposed a pattern of deceit and manipulation that is incompatible with attracting and retaining investment.
To avoid long-term economic stagnation and regain investor confidence, AKSG must take immediate steps to address these issues and commit to ethical and transparent business practices. Only through genuine reform can Akwa Ibom restore its standing as a viable and trustworthy destination for foreign direct investment.
