Management contract saga: How AKSG coerced Icon Group’s foreign workers to resign

TheMail’s investigation has unearthed startling discoveries on the intrigues behind the contract saga between Akwa Ibom State Government and Icon Group over the management of the state owned 163-room 5-star hotel formerly managed by Le’Meridien (Marriot).
Akwa Ibom State Government had signed a 15-year management deal with Icon Hotels & Resorts Nigeria Limited with the aim of repositioning the leisure facility for effective service delivery and profitability.
The signing ceremony which was witnessed by the representatives of the State Government and that of the Icon Hotels & Resorts Nigeria Limited took place on Thursday, 23rd December 2021, at a meeting Hall in Ibom Icon Hotel & Golf Resorts, Uyo.
In his opening remarks during the signing ceremony, the then Chairman, Board of Directors, Ibom Icon Hotel & Golf Resorts, Mr. Udeme Ufot, described the occasion as a momentous one in the history of the hotel since its establishment in 2007 by the Victor Attah administration.
According to Ufot, “Our prime asset was not going the way we wanted it to go, and that kind of concern must necessary lead to some actions, and so in October 2020, the Government of Akwa Ibom State, took a bold decision to handover this hotel under an MoU for a twelve month test-run to Icon Hotels & Resorts Nigeria Limited to show us what they could do to turnaround this prime asset of the state”.
“It has been quite a journey, and the twelve months that they were given to show their skills have been executed, and we have reasons to believe that from what we have seen, there are clear evidence, even from guests comments, that there are improvements in this facility. Therefore the State Government has decided to move to the next stage of our plans for this hotel through Icon Hotels & Resorts Nigeria Limited, which is why we have gathered today to sign that long term management contract to take this our great asset to that level that would be the pride of the Akwa Ibom people.” Ufot stated.
Explaining the structure of the agreement, the then Chief of Staff, (CoS) to Governor Udom Emmanuel, Akparawa Ephraim Inyang -Eyen, stated that it was the decision of the State Government to enter into a management agreement with the Icon group to manage the operations of the facility for greater benefits to the state and the people.
“The process that started on the 2nd of October 2020, has today culminated in the signing of this long term management service agreement of fifteen years, where the hotel has now become Ibom Icon Hotel & Golf Resorts, managed by the Icon group. The property remains that of the State, but the Government has given the group a free hand to manage this hotel for our collective good”, Ephraim said.
The then Commissioner for Culture and Tourism, Orman Esin said: “Through this deal, we have seen a facility that was very tired, but now wearing new looks, and bearing new innovations. We are very impressed with the level of administrative structures that have now been put in place to manage the operations of this hotel”.
But barely three months after the official signing of the contract, the AKSG abruptly terminated the contract under controversial circumstances.
Despite huge commendations Icon Group enjoyed from the AKSG during the contract signing ceremony in December 2021, the state government shockingly terminated the agreement on March 4, 2022. TheMail learnt on good authority that during the March 4, 2022 meeting, key expatriate personnel of the hotel were forced to resign for no tangible reason.
In an interaction with TheMail reporter recently, a former Icon Group employee gave chilling account of the coercion and intimidation antics of the Akwa Ibom State Government.
The former personnel, who spoke under the condition of anonymity, said it was a tale of tears and fear, highlighting the despicable and dastardly act orchestrated by AKSG in the abrupt termination process.
According to our source, AKSG deployed Gestapo-like tactics, including threats of revocation of work permits, arrests, detention, and deportation, to coerce the expatriate staff of the Icon Group into resigning from the company (Icon Hotel Group), and then told to immediately sign to work directly with Ibom Hotel & Golf Resort. This, according to our findings was a direct breach of their employment contracts with the Icon Group.
Under the threat of potential physical harm and for their safety, the expatriates were allegedly forced to sign resignation letters prepared by AKSG. These letters, according to our findings, were then forwarded to the Icon Group as evidence of their resignation. The expatriates were reportedly forbidden from contacting the Icon Group under threat of the enormous powers AKSG would wield against them.
“It is sad that a sub-national government could descend into such unethical practices. The use of threats, intimidation, and coercion against foreign personnel not only breaches international labor laws but also tarnishes the reputation of Akwa Ibom State as a safe and reliable investment destination”, a lawyer who majors in labour law told TheMail newspaper on Monday.
“The international community and potential investors are closely watching how this situation unfolds. There is a growing call for an independent investigation into these allegations to ensure that justice is served and such despicable actions are not repeated”, the lawyer said.
There are three pending cases in court between Icon Group and the Akwa Ibom State Government over the controversial breach of contract. Few weeks ago, the Icon Group, via a Caveat Emptor had warned hospitality management companies who may want to take over the management of the 5-star hotel to beware of the pending cases and steer clear until determination of the substantive suits.