Govt housing programme in disarray

BAD management and lack of control marred Government’s housing loan programme despite an increased need for shelter, according to a parliamentary report tabled in the National Assembly on Thursday.

The Build Together Programme (BTP) was decentralised to regional councils and local authorities in 1998. Since then these authorities have been in charge of the administration and implementation of the programme.Accumulated debt on housing loans have come to N$12,8 million, of which N$6,5 million has already been written off – leaving N$6,27 million not yet recovered.Some 1 085 houses are uncompleted.No contractual agreements exist between the line ministry and the beneficiary.At Usakos, an official of that municipality allocated a loan of N$46 200 to himself, but did not use it to build a house.A fraud case is pending.At Henties Bay, a councillor received a loan although she was not eligible.The councillor in question is now paying back the loan in instalments of N$330,21 each.At Rundu, six beneficiaries received housing loans although they were not eligible due to their high income, the parliamentary report revealed.The Katima Mulilo town council used the N$700 000 allocated for the housing scheme for operational expenditure.This was discovered during a visit of ministerial officials.The municipality now pays back the money in instalments of N$100 000 per month.The same was done at Okakarara, where an amount of N$950 000 for the housing scheme was used for other purposes.This resulted in the suspension of the programme for the time being.A maximum of N$32 000 is lent, with some loans increased to N$40 000, but that is too low today, with building costs rising continuously, the report said.On the positive side, unemployed youths are helping to build houses for the loan beneficiaries, but are in dire need of training, the committee reported.”Considering the economic status of this small village and the rates of unemployment, the committee was impressed with the unity and selflessness of these community members who assist each other.”At Otjiwarongo, the municipality is in control of house construction and not the beneficiaries, which is a far better system.A widow with six children, who is a cleaner at the Rundu Vocational College, did remarkably well, having repaid her loan of N$20 000 in full despite struggling to make ends meet.”The widow impressed the visiting committee members with a well constructed and good quality three-bedroom house,” the report noted.The parliamentary committee recommended that the Ministry of Regional and Local Government and Housing should be empowered to reclaim abandoned and surrendered houses in the country and allocate them to those in need of shelter.The Ministry should direct regional councils and municipalities to enter into contracts with applicants for the Build Together Programme after a loan was approved.Transfer of ownership of houses should only be done once the beneficiaries have settled their debts.Officials at regional councils and local authorities should be trained to manage and administer the housing loan scheme.The Otjiwarongo municipality, where the Build Together scheme is working well, could render assistance to smaller local authorities in this regard.The ministry should also reassess the housing programme at Okakarara and make funds available again so that it can continue, the committee recommended.Since then these authorities have been in charge of the administration and implementation of the programme.Accumulated debt on housing loans have come to N$12,8 million, of which N$6,5 million has already been written off – leaving N$6,27 million not yet recovered.Some 1 085 houses are uncompleted.No contractual agreements exist between the line ministry and the beneficiary.At Usakos, an official of that municipality allocated a loan of N$46 200 to himself, but did not use it to build a house.A fraud case is pending.At Henties Bay, a councillor received a loan although she was not eligible.The councillor in question is now paying back the loan in instalments of N$330,21 each.At Rundu, six beneficiaries received housing loans although they were not eligible due to their high income, the parliamentary report revealed.The Katima Mulilo town council used the N$700 000 allocated for the housing scheme for operational expenditure.This was discovered during a visit of ministerial officials.The municipality now pays back the money in instalments of N$100 000 per month.The same was done at Okakarara, where an amount of N$950 000 for the housing scheme was used for other purposes.This resulted in the suspension of the programme for the time being.A maximum of N$32 000 is lent, with some loans increased to N$40 000, but that is too low today, with building costs rising continuously, the report said.On the positive side, unemployed youths are helping to build houses for the loan beneficiaries, but are in dire need of training, the committee reported.”Considering the economic status of this small village and the rates of unemployment, the committee was impressed with the unity and selflessness of these community members who assist each other.”At Otjiwarongo, the municipality is in control of house construction and not the beneficiaries, which is a far better system.A widow with six children, who is a cleaner at the Rundu Vocational College, did remarkably well, having repaid her loan of N$20 000 in full despite struggling to make ends meet.”The widow impressed the visiting committee members with a well constructed and good quality three-bedroom house,” the report noted.The parliamentary committee recommended that the Ministry of Regional and Local Government and Housing should be empowered to reclaim abandoned and surrendered houses in the country and allocate them to those in need of shelter.The Ministry should direct regional councils and municipalities to enter into contracts with applicants for the Build Together Programme after a loan was approved.Transfer of ownership of houses should only be done once the beneficiaries have settled their debts.Officials at regional councils and local authorities should be trained to manage and administer the housing loan scheme.The Otjiwarongo municipality, where the Build Together scheme is working well, could render assistance to smaller local authorities in this regard.The ministry should also reassess the housing programme at Okakarara and make funds available again so that it can continue, the committee recommended.