Housing agency on the spot over homes allocations to applicants
Housing Minister Soita Shitanda (centre) addresses journalists at Ardhi House in Nairobi last week. He denied claims that senior members in his office were allocated houses irregularly. He is flanked by PS Kosgei Tirop and NHC acting chairperson Grace Wanyonyi. Photo/FILE
By AGGREY MUTAMBO amutambo@ke.nationmedia.com
Posted Sunday, July 29 2012 at 23:30
Posted Sunday, July 29 2012 at 23:30
IN SUMMARY
- Lobby groups demand inquiry into claims of shady deals at NHC and disclosure of house ownership records for all schemes
Questions on how the National Housing Corporation allocates houses remain unanswered as lobby groups continue to exert pressure on Housing Minister Soita Shitanda to explain how transparently the firm has been operating.
Mars Group Chief Executive Mwalimu Mati told the Nation that recent reports of malpractices at the corporation had indicated a “total breakdown” in the organisation, and that Kenyans needed to know the beneficiaries of the mess.
“We have read the report and when the minister tries to say that no top government official irregularly got the houses, he is trying to recreate facts. He should know that Kenyans are not satisfied with his explanation,” he said.
On Sunday, the Consumer Federation of Kenya (Cofek) joined calls for the government to institute a public inquiry into claims of rot at the corporation and the ministry as a whole.
Cofek Secretary-General Stephen Mutoro said Mr Shitanda’s decision to sack NHC officials was a scheme to cover up details that could implicate more top government officials in the homes scam.
“As Cofek, we think this should qualify for a public inquest because Shitanda’s decision was too little too late,” he said. “We are not satisfied because the houses have not been returned and we need to know how the NHC has been operating.”
Last week, Mr Shitanda blamed NHC management for failing to comply with the housing policies but denied there was favourable treatment of top government officials who had applied for, and got, the houses.
“There was a tendency by the staff to develop greed for those houses leading to a situation where they were having more than one house,” he told reporters at his Ardhi House office in Nairobi in response to claims of malpractices at the firm.
Amassed houses irregularly
“No houses are reserved for any selected members of the society and all applicants are subjected to the same allocation criteria,” he added when queried on top government officials.
He said he had suspended the officials, because they had amassed houses irregularly, although Managing Director James Ruitha’s term has ended anyway.
He further stated that the managers would not be compelled to return the houses to the government for fear of litigation.
But the Youth Platform for Change (YPC) wrote to Mr Shitanda demanding “full disclosure of facts” of house allocation by the corporation since its inception four decades ago.
“The NHC Board Audit Committee Report was based on a sample of 8 projects. NHC has done more that 8 projects and the government needs to disclose information for all schemes.”
YPC lawyer Antony Oluoch said his clients would seek all means to restore lost public assets and punish those who breached the law in acquiring or giving them out.
The activists argued that the ministry was using the current management of NHC as sacrificial lambs to cover up a deeper rot in the allocation of homes.
“For the record, our clients are aware and or have information that you as the minister received recommendations from the National Housing Corporation Board in March this year and which you chose not to act on and can, therefore, not purport to be acting on the same recommendations, which you had earlier ignored,” the letter further stated.
Mr Shitanda said that NHC only gave houses to those who either paid in cash or could deposit at least 20 per cent of the total price of houses.
According to the application procedure, interested parties had to buy applications forms, fill and return on time with the required deposit.
They were supposed to indicate their employment status and where they would get the money to pay up the remaining balance.
However, it has emerged that some of the applicants had paid as high as 35 per cent on application but failed to get the units.
In Lang’ata Phase IV, for instance, a one-bedroom house was selling at Sh4.9 million while a three-bedroom unit was priced at Sh7.5 million.
Ms Evelyn Wasike applied for the one bedroom house and paid 35 per cent of the money on time. In September last year, she received a reject letter plus her refund.
There was no explanation on what had caused the disqualification, she claims.
“I made the payment as required, but then I was told I can’t qualify. It was so disappointing because I had put in my hope,” she said.
NHC interim officials refused to give details on whether there were other reasons one could fail to get a house.
“We are just new in office and I am not able to respond to that,” said acting Board Chairman Grace Wanyonyi.
But it remains unexplained whether suspended NHC managers fulfilled the conditions for getting the houses they amassed.
Be that as it may, there was a thin line between conflict of interest and qualifying for the homes.
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