Govt considers direct take over Roosevelet Hotel
Aftab Ahmed
Islamabad: Amid controversy over Roosevelt Hotel‘s shutdown in New York, the PTI government has considered an option to take over directly Roosevelt and Scribe Hotels.
The Roosevelt Hotel management had advertised and announced on its Twitter account to shut down the hotel on October 13, leading to strong criticism in the country.
READ Roosevelt Hotel management announces to shut down the hotel.
Following this, the National Accountability Bureau (NAB) had taken notice, and the probe was initiated against the announcement of shutting down the Roosevelt Hotel.
Aviation Division had also taken up the matter in Economic Coordination Committee earlier that it was not consulted on the Roosevelt Hotel‘s issue.
Earlier, the Economic Coordination Committee (ECC) had taken up the matter of Roosevelt Hotel in its meeting held in August this year. The meeting was informed that ECC earlier, while approved, in principle, the proposal with the direction to a Committee headed by Deputy Chairman, Planning Commission and including Secretary, Finance Division, Secretary, Aviation Division and Secretary, Law&Justice Division to deliberate on the financial and legal implications of the issue in a holistic manner.
The Committee shall submit its report with viable recommendations to the ECC in its next meeting. Accordingly, the Committee convened its meeting, and after detailed deliberations, the following recommendations were made for the ECC’s approval.
- Roosevelt’s operations are shut down permanently, and negotiations with unions are commenced.
（ii) A sum of USS 5.00 million to cater to expenses at Roosevelt till year-end be approved and disbursed by the end of Sept.2020.PIAIL’s current cash balance is USS 3.00 million.
(iii)
PIAIL to give notice before September 9, 2020 payment date to the lender for prepayment of US$ 105.00 million on October 9, 2020, with exit fee as per legal opinion. Cash funds to be available in NYC at least five working days before October 9, 2020.
（iv)
A sum of USS 13.7 million for settlement of severance of union and non-union employees, US$ 18 million for a pension fund, US$ 3.4 million for creditors, and USS 2.00 million for closing cost total amounting to US$ 142.00 million be please made available in cash at NYC on a timely basis.
（v)
Carrying costs of approximately USS 13.00 million p.a to be funded until GOP finalizes lease/JV of Roosevelt’s site.
During the ensuing discussion, the Additional Secretary, Cabinet Division pointed out that the above case should be submitted by the Aviation Division being an Administrative Division of PIAIL, in the form of a summary in light of rule 18(1) read with rule 23(4)of the Rules of Business,1973. The ECC deliberated on the recommendations of the committee and observed that the Aviation Division was not consulted in the matter.
The ECC directed that all stakeholders, including the Aviation Division, be involved in every discussion and negotiation related to Roosevelt Hotel, New York. The forum further directed that issues should be handled fairly and transparently and in the best national interest.
The Economic Coordination Committee(ECC)of the Cabinet noted the recommendations made by the Committee constituted by the ECC under the Chairmanship of Deputy Chairman, Planning Commission, and directed Aviation Division to submit a formal summary on the recommendations of the Committee for consideration of the ECC.
The ECC further directed that issue of Roosevelt Hotel; New York should be handled fairly and transparently and in the best national interest.
