The management of Oxford No. 1 Hotel in Accra said Tuesday it remains in control of the property, denying reports that a receiver appointed by Cola Holdings Ltd has taken possession.

In a statement on Thursday (23 July), Kensington Residential Partners 1 Limited (KRP1 Ltd), the company that owns and operates the hotel, said an order granted by a court on 21 July authorising police assistance to a receiver “has not yet expired” but “has not taken effect” seven days after it was issued.

KRP1 Ltd said it has instructed lawyers to appeal the decision and to file applications to restrain Cola Holdings Ltd and the appointed receiver from taking possession pending the outcome of the appeal.

“The Management of Oxford No. 1 Hotel wishes to inform the general public, staff and other stakeholders that Oxford No. 1 Hotel remains under the control and possession of its Management and Directors,” the statement said. “Oxford No. 1 Hotel remains open for business.”

Background

KRP1 Ltd is a limited liability company owned in equal shares by its two directors, Ghanaian businessman Nana Kwame Bediako and Azad Cola.

The company developed Oxford No. 1 on Oxford Street with shareholder capital and a loan facility from the International Finance Corporation (IFC). The hotel opened in December 2019, but management said trading was hit by the Covid-19 pandemic from 2020, which prevented it from generating enough revenue to service the IFC facility.

According to KRP1, while management was negotiating with the IFC to restructure the loan, Azad Cola — through Cola Holdings Ltd — wrote to the company claiming he had personally repaid the loan in full and demanded reimbursement.

KRP1 said that as a director, Mr. Cola had a fiduciary duty to inform the company and seek approval before entering into any transaction of that kind. “To date, neither Azad Cola nor Cola Holdings Ltd has produced any evidence that the IFC loan was in fact repaid,” it added.

The statement said two previous applications by Cola Holdings Ltd on the matter were dismissed by the High Court. That ruling is now the subject of an appeal.

KRP1 also noted that Cola Holdings Ltd is separately seeking to recover the same sum from Mr. Bediako personally in parallel proceedings, while also pursuing recovery from both KRP1 and Mr. Bediako.
“Management does not believe the courts of Ghana will permit such unjust enrichment,” it said.

The company urged the public to “disregard the false impression created by the recent press coverage” and to await the outcome of the appeal and related applications.

Oxford No. 1 Hotel is one of several boutique hotels in central Accra and has been linked to Mr. Bediako, a prominent businessman and former presidential candidate.