Hoteliers Association threaten legal action over unpaid African Games debts
The Ghana Hoteliers Association has announced plans to investigate threats from some of its members to sue the Ministry of Youth and Sports and the Local Organising Committee (LOC) for failing to pay 80% of the funds owed after hosting guests for the 13th African Games in Accra.
Despite only receiving 20% of the agreed amount, the hoteliers assert that their repeated efforts to secure the remaining balance from the Ministry have been fruitless.
Dr. Edward Ackah-Nyameke, President of the Hoteliers Association, expressed his concerns about the issue in a conversation with Citi News on Sunday.
He urged the government to implement measures to fulfil its financial obligations to the service providers it engages.
"The games were organised in March, and we are now well into July. These rates were negotiated long before the games began, so one would expect that they were factored into the budgeting for the all-African games and provisions made for payment right after the event," Ackah-Nyameke stated.
“Only 20% upfront payment has been made, with 80% still outstanding. I’m not sure if more hotels are affected beyond the 40 reported. We will have to take up this issue because it impacts the industry.
"Even if some hotels aren't Association members, anything affecting hotels has wider implications, so we will start inquiries and advocate for prompt payment of these arrears.”
Mr Ackah-Nyameke highlighted that this issue is not new.
"Some hotels have decided not to deal with public agencies due to similar payment issues. It’s an ongoing problem. We need to find a way to address it, and hopefully, this story will prompt the agencies to meet their financial responsibilities."
The 13th African Games this year saw over 13,000 participants, including 5,000 athletes, 3,000 technical officials, 3,000 volunteers, and 2,000 guests from 54 African countries. Many of these guests were lodged in hotels in Accra.
The LOC and the Ministry of Youth and Sports had negotiated rates with the hoteliers before the games. Over 40 hoteliers report that the Ministry made an upfront payment of only 20%, with a commitment to pay the remaining 80% immediately after the games concluded on March 23.
However, the Ministry has yet to clear its outstanding debt.
Source : MyjoyOnline.com
