Govt cancels Legacy deal, reverts to Peermont

Malawi Government has made a dramatic U-turn on the management of the Umodzi Park which included the yet-to-be-opened five-star hotel in Lilongwe and has since resumed discussions with the Peermont Group of South Africa.

This development comes months after cancelling the initial deal with the Peermont, The Nation has learnt.

Officials from the South African hotel company are due to arrive in the country this Sunday to conduct an inspection of the Umodzi Park in Lilongwe ahead of signing a contract with government, Minister of Tourism and Culture Moses Kunkuyu confirmed in an interview yesterday.

He said: “What you should know is that we are in discussion with Peermont. The Legacy deal is off.”

But Kunkuyu refused to divulge more reasons behind the sudden change of heart by government on the controversial Umodzi Park deal.

The process of contracting a management firm for the multi-billion kwacha Umodzi Park—comprising of the Bingu International Conference Centre (Bicc), the five-star President’s Hotel and the Presidential Villas—has been protracted and shrouded in controversy.

Last year, government cancelled a contract with Peermont at the eleventh hour and opted for Legacy Limited, another South African company, amid suspected political interference.

However, Kunkuyu revealed that the possible deal with Legacy hit a snag during discussions on financial terms.

He further confirmed the scheduled arrival of Peermont officials, revealing that while they are in the country, government and the company’s officials will jointly conduct technical audit of the facility.

Attorney General Anthony Kamanga was reportedly outside the country as The Nation sought details of the new agreement and Ministry of Justice and Constitutional AFffairs spokesperson Apoche Itimu was yet to respond to a questionnaire as we went to press.

While the Bicc has been operational under interim agreement with Sunbird Tourism Limited, the five-star hotel and the villas, initially earmarked to host the 2010 African Summit which was later hosted by Ethiopia, are yet to start operations.