Thursday, October 17, 2019

National Housing Corporation Is Some $60 Million In Debt

The Chairman of the National Housing Corporation (NHC), Timothy Mangal, has disclosed that the entity is in debt in the sum of approximately $60 million.

“We found it in very serious financial difficulties,” Senator Mangal told reporters Thursday.

But he explained that although the NHC has been able to stem the flow and turn things around,  there is a huge deficit both in recurrent expenditure and liabilities on capital projects with the National Insurance Corporation (NIC), primarily the CDC units.

Mangal revealed that all options are being examined.

“As you know, the National Workers Union is the bargaining agent for the workers of the NHC. Naturally we would have to engage them in that process. We have done so and that is why we had a historic collective meeting with the National Workers Union, the staff,the board and management  of NHC,” he explained.

Mangal said the objective was to have everyone contribute to the process in respect of the NHC’s viability.

He told reporters that in time a determination will be made regarding the corporation’s future.

Mangal asserted that the NHC needs to be able to stand on its own two feet.

“We must not necessarily make a profit, but as you know the NHC over the years has not been able to sustain itself because it had done no major housing development projects in the years between 2011 and 2016,” the NHC Chairman observed.

“So as we came in we did the Forestiere housing projects – we recognised small profit margins from that which could  help for the operations of the NHC. That is why we went into the PPP with contractors and I can tell you that very soon we’ll be formally launching two projects,” Mangal disclosed.

He asserted that certain things are happening.

However the NHC official told reporters that the corporation needs to sustain its own operations.

“That is what the government of Saint Lucia is asking because too many times before it had to come in,” Mangal recalled.

He noted that in 2014 the then Saint Lucia Labour Party (SLP) administration had to step in and bail out the NHC in the sum of  $14 million in relation to corporation’s recurrent expenditure debt, with the promise that the corporation would not again find itself in debt.

“We came in in 2016; that recurrent expenditure – meaning just the payment of salaries, utilities and other stuff, had gone back to a deficit of $3.5 million.”

Mangal declared that such a situation is not healthy for any organisation.

 

 

 

17 COMMENTS

  1. Criminal management of such an important entity by the former Government.
    Zero accountability is killing this country! The crooks love it though.

      • John Public is clearly a blinded political hack – one of those that believe that party interest comes before country and despite all Chatanet’s ills in running down this country will absolve him. Thanks Anonymous and The Crow for your objectivity. The issues of the SHA turned NHC have been there for decades upon decades. Therefore administrations of both parties have not solved the problem.

      • All past Government have done this country wrong! I scratching my head trying to figure out how by pointing out one particular government for one particular wrong is partizan? The Crow and Clean dispensation I think your the ones with the hackish propensity.

  2. Why wasn’t that disclosure made at the beginning. Why is there always excuses for failures ? Always blaming their predecessors. Fix the damn problems you all claimed to be able to fix, hence the reason you all were voted in, or else…..

  3. Let truth be told. The NHC inherited the debt of the then St Lucia Housing Authority when they merged in 2002. The then government at the time reduced the rental from $800.00 (2 b/room) & $600 (1 b/room) to $600.00 and $400.00. It is very clear with all the political involvement persons were placed in the CDC and were’t able to pay even after the prices were reduced. How was Houing Authority able to service their loans? Please senator speak truth. You are raising an alarm due to your personal interest in the corporation. You want the place shut down so that Fresh Start can take over. All of the PPP Project have already been given to Fresh Start. This corporation needs to be looked at very closely and investigated.

    • Wow. It just so happens that guy is the head of the ministry that overseas nhc. If that is not conflict of interest and a jailable offense I don’t know what is.

  4. Mangal is the biggest problem in the NHC , the guy lacks management skills. Being a shopkeeper, which he is, does not qualify as having management skills. That place needs a forensic audit.

  5. Just imagine the head ( chairman, who runs it like he is the GM) of an organisation is literally ” crying” and “complaining” of financial performance even after 3 years of being there!!! Are you kidding me? This backslider- appointee knew this upon assuming his role! Some of these politicians need to board that hospital ship and never return to land!

  6. CHAS MAKE SURVEY. ..PPL WHO HAVE LAND AND RENTING FOR PPL ..NOT PAYIN TAXES AND EH EVEN HAVE TITLE . WE WHO DETERMINE TO BUY LOOK IN IT AND SELL FOR US…MAKE AN ISAND WIDE SURVEY . SEE HOW THE COUNTRY WILL MAKE SOME CASH ..EVEN IF TO PAY 5 DOLLARS ON THE DEPT GUVELMA OWING

  7. Why are CDCs only built in castries government has land other places why not start build from there and stop sell our country to foreigners.

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