‘Everyone is subject to the same conditions’ – Guyana Chronicle
–President Ali emphasises ‘openness, transparency’ in housing sector
–less than 10 per cent of land allocations went to private developers over last four years
PRESIDENT Dr. Irfaan Ali has said that the strict regulations, transparency and openness in the housing sector ensure that there is fairness in allocations, and no room for misconduct.
The President, during a live broadcast on Monday evening, spoke extensively on the operations of the Central Housing and Planning Authority (CH&PA), and emphasised his administration’s commitment to ensuring that there is transparency in all spheres.
Although under the A Partnership for National Unity+ Alliance For Change (APNU+AFC), the housing sector was embroiled in allegations of infractions, corruption has been stamped out under the current Ali-led administration.
First, the Head of State spoke on the land policy and how it has resulted in the lives of ordinary citizens being transformed.
While the Opposition has ramped up its rhetoric that the ordinary Guyanese are not seeing changes in their lives, the President pointed out that less than 10 per cent of the total acreage of lands were allocated to private developers and commercial purposes, within the last four years.
What is important to understand is that the resources generated from the sale of lands to private developers were for development purposes.
For further clarity, he said that the resources from it are used to cross-subsidise investments for low-income, middle-income and low middle-income properties.
The Head of State related that the concept of cross-subsidisation in the housing sector is a key one, and that is why, with government investment and cross-subsidisation, they are able to heavily reduce the cost of a house lot allocated to an ordinary person.
‘THERE IS A PROCESS’
There is no longer inadequate oversight of the housing ministry, unlike from 2015-2020, but instead the agreements between the government and private developers are just and transparent.
The President gave a detailed explanation to the Guyanese populace of what the agreement entails, dismantling the narrative of detractors.
Within the process, there is an expression of interest, and private developers would have to respond to it and, notably, all of the developers would have to sign the same agreement.
Dr. Ali firmly stated: “In this agreement, under the People’s Progressive Party/Civic government, no land can be transferred or vested without the full payment.”
The private developers must also install the necessary infrastructure such as: Drainage, roads and street lighting within 18 months of the date of the agreement.
The developers must also substantially complete 70 per cent of the residential construction within three years of the date of the agreement.
The depth of the agreement goes beyond that, as the purchase price for all private developers is $30 million per acre.
Also, a 30 per cent deposit must be made upon the signing of the agreement, and the balance of the purchase price shall be paid to the vendor, which is the CH&PA, within 18 months of the date of this agreement.
“So, none of these developers would have title until all of these conditions are satisfied,” he said, while noting that if the requirements are not satisfied, then CH&PA “shall be under no obligation” to accept the balance of the purchase price, and convey title to the purchaser, and may, at that point, terminate the agreement.
Even when the CH&PA terminates the agreement, it retains the 30 per cent deposit.
Also, Dr. Ali said that ownership of the property will be transferred in the name of the purchaser on publication of the sale in the Official Gazette.
“Nothing in secrecy,” the President firmly stated, adding: “That is the level and the strength of the agreement.”
APNU+AFC’S ACTIONS
The previous APNU+AFC administration had faced criticism for its slow pace of house lot allocations, and the series of questionable transactions it executed, especially when it lost the 2020 General and Regional Elections.
President Ali called out the Opposition for its audacity to even attempt to finger anyone in an allegation of misconduct, when there is documented evidence of their actions while in office.
AFC Leader Nigel Hughes, although entangled in his fair share of allegations of infractions, has been at the forefront of criticising the government.
The President blazed him for this diversionary tactic, and said that it was under the APNU+AFC government that there were a number of controversial transactions in the housing sector.
On the East Coast of Demerara (ECD) in July 2020, even after the APNU+AFC lost the election and refused to give up power, there were 23 transactions for the sale or lease of land at Plantation Ogle, Chateau Margot and Le Ressouvenir which lacked the requisite framework.
However, it gets worse, Dr. Ali said.
As he elaborated on what occurred in 2015-2020, he contended that the APNU+AFC was “callous” in their actions.
In most of those transactions on the ECD, less than 10 per cent of the total purchase price was collected, the President revealed.
Even while the Opposition wants to preach transparency and fairness, Dr. Ali highlighted that the PPP/C government collects 30 per cent as down payment, along with a series of rigid conditions, as opposed to less than 10 per cent like the APNU+AFC did.
The President remarked that under the PPP/C, “Everyone is subject to the same conditions.”
In some instances, the APNU+AFC vested the property in the purchaser’s name with no conditions met, Dr. Ali said, adding that there were many cases of these prime State properties being undervalued.
In several instances, two of the applicants never even paid the lease fee.
As for the East Bank of Demerara (EBD), 22 transactions were entered into at Plantation Peter’s Hall by the APNU+AFC.
The lease transactions had a minimum term of 20-25 years, he said, and there was no public process, but instead, Dr. Ali said that the APNU+AFC “handpicked” the individuals that benefited.
APNU+AFC set the lease fee for these prime lands at only $12,000 per acre per month, he said. As of July 2020, $36 million was received against properties valued over $10 billion.
In Region Ten (Upper Demerara-Upper Berbice), under the APNU+AFC, the National Industrial and Commercial Investments Limited (NICIL) undertook 148 agreements of sale without public processes, the President stated.
This is in sharp contrast to the operations of the PPP/C administration, which has and is working to regularise lands in Linden for the ordinary Guyanese.
Similar actions which were recorded on the ECD and EBD also happened at Wales, and as he spoke on those contentious transactions under the APNU+AFC, the President said: “This is the reality.”
In respect to these actions, the Head of State said: “And APNU+AFC has the audacity to speak about land policy and land development policy.”
‘THE FACTS ARE HERE’
Owing to the Ali-led administration’s commitment to enhancing the lives of all, the country has seen massive investments in not only housing but other sectors as well.
Under the PPP/C Government, more than 40,000 plots of land have been allocated, and this is just from the Ministry of Housing, the President reported.
Even when the PPP/C assumed office in 1992, they worked to improve housing in Guyana, where there were over 100,000 people living in squatter settlements, as reported by the United Nations (UN).
Even though it inherited a country grappling with the worst crisis, in five years, over 21,000 house lots were allocated, Dr. Ali said.
From 2004-2014, Guyana saw tremendous investments, and an acceleration of the housing programme with $30 billion being invested in the sector.
“In every single region, in Region Ten, a 37 per cent increase in housing stock, Region Three 66 per cent. For every single region, there was an increase,” he said, noting that by 2015, the PPP/C had distributed more than 115,000 house lots, along with regularising a number of squatter settlements.
However, the housing sector saw no developments under the APNU+AFC, as the President pointed out that the ministry was disbanded and reduced to a department, showing how they viewed home ownership.
In their entire period, APNU+AFC only allocated 8,000 house lots.
Further, the accessibility of housing for the ordinary Guyanese was a challenge, as the mortgage limit relief was limited and Value Added Tax (VAT) was placed on a number of commodities, including building materials.
“That is their legacy,” Dr. Ali said.
However, since assuming office in 2020, $240 billion has been allocated to the housing sector, 17 squatter areas have been regularised, among other policies that have made home ownership accessible for all.
The total subsidy of wealth transfer to the beneficiaries of the house lots is approximately $94 billion, he said.