THAT THE NATIONAL HOUSING CORPORATION (NHC) is in the red was long known. What is mind-boggling is the level of indebtedness, which Minister of Housing and Lands Denis Kellman has indicated is in excess of half a billion dollars. This is punishment for taxpayers.
The NHC is a classic example of a state agency which has long gone awry. Its debts have mounted over the years even though we have heard from time to time that it was on a growth path. But such statements have never gelled with reality and were nothing but comfort to a fool. The NHC’s lifeline has been the transfer of funds and guarantees by central Government. The situation is such now that any transfers will be primarily to meet payment of salaries.
For many years we have heard the outcry about high delinquency in payment of rents and despite the occasional action against a very small number for non-payment, the efforts quickly dissipate. Sadly, the arrears have only worsened.
It is well known that the level of inefficiency at the NHC is deeply entrenched. Maintenance workers often complain about having insufficient or no materials with which to work, and there is generally very poor supervision. The corporation is plagued by high levels of absenteeism, “presenteeism” and poor productivity. At the same time, the backlog for low-income housing remains at a staggering level.
Minister Kellman paints a gloomy picture of the NHC unless it gets into commercial projects. But such incursions will hardly save the NHC from its dire financial straits. If the NHC were a privately operated business, the receivers would have been called in a long time ago. Neither its bankers nor shareholders would have accepted this untenable situation and Mr Kellman and his predecessors, the directors and the management would have been held accountable.
The NHC needs to recognise that it is a business and not a welfare agency. Its financials must be brought up-to-date and made available for public scrutiny, while the duplication that occurs between the NHC and the Rural and Urban commissions must not be allowed to continue. The long-standing political practice of bloating the NHC’s staff must also be stopped.
It is evident the NHC must sell off most of its units and further reduce its staff if it is to survive. Its creditors must be given a time frame for payment; obligations to the NIS and pension plans should be fully paid up. The NHC should also let the public know whether all its property and vehicles are fully insured.
This problem must not be allowed to fester all in the name of political expediency while a totally inefficient bureaucracy flounders day after day, creating more fiscal challenges for an already burdened Government. Hard decisions must be made to prevent allof us from going under.