Finance cleared NH&CC land deal, says Opagi
Aug 02, 2003
THE finance ministry gave the National Housing and Construction Corporation (NH&CC) the green light to swap its land at Lubowa and Namongoona in Kampala as repayment for an US$8m dollar loan.
By Yunusu Abbey
THE finance ministry gave the National Housing and Construction Corporation (NH&CC) the green light to swap its land at Lubowa and Namongoona in Kampala as repayment for an US$8m dollar loan.
Michael Opagi, the Privatisation Unit (PU) director, said on Thursday, the NH&CC would not have ventured into such a deal without its board’s approval.
NH&CC, previously under the works, housing and communications ministry is under the finance ministry pending its privatisation.
Leonard Mpuuma, the National Social Security Fund (NSSF) managing director, said on Monday, the public would be informed if the Lubowa-Namungoona land deal is sealed.
“The corporation is facing financial problems. It has to restructure its financial position,†Opagi said.
Government auditors have been instructed to audit the corporation.
“It (NH&CC) has outstanding loans to pay to the NSSF (US$8m) and East African Development Bank (US$4m),†Opagi said, adding, “For instance, the Crested Towers building was mortgaged to NSSF for the loan the corporation got.â€
“The NSSF loan had gone down to about US$7.6m after NH&CC made some payments to the Fund. But with some outstanding arrears, the figure went up again,†a source said.
The Crested Towers renovation cost where the borrowed money was spent, has since shot up to US$20m following variations made on the two buildings.
In a March 15, 2002 letter to Martin Kasekende, the NH&CC general manager, John Nasasira, the works, housing and communications minister, okayed the additional costs for the project.
THE finance ministry gave the National Housing and Construction Corporation (NH&CC) the green light to swap its land at Lubowa and Namongoona in Kampala as repayment for an US$8m dollar loan.
Michael Opagi, the Privatisation Unit (PU) director, said on Thursday, the NH&CC would not have ventured into such a deal without its board’s approval.
NH&CC, previously under the works, housing and communications ministry is under the finance ministry pending its privatisation.
Leonard Mpuuma, the National Social Security Fund (NSSF) managing director, said on Monday, the public would be informed if the Lubowa-Namungoona land deal is sealed.
“The corporation is facing financial problems. It has to restructure its financial position,†Opagi said.
Government auditors have been instructed to audit the corporation.
“It (NH&CC) has outstanding loans to pay to the NSSF (US$8m) and East African Development Bank (US$4m),†Opagi said, adding, “For instance, the Crested Towers building was mortgaged to NSSF for the loan the corporation got.â€
“The NSSF loan had gone down to about US$7.6m after NH&CC made some payments to the Fund. But with some outstanding arrears, the figure went up again,†a source said.
The Crested Towers renovation cost where the borrowed money was spent, has since shot up to US$20m following variations made on the two buildings.
In a March 15, 2002 letter to Martin Kasekende, the NH&CC general manager, John Nasasira, the works, housing and communications minister, okayed the additional costs for the project.