BASSETERRE, St. Kitts –Parliamentary Representative for the main opposition party, People’s Action Movement, Hon. Shawn Richards is once again calling on the National Housing Corporation (NHC) to produce and publicise the federal agency’s financial statements for the past twelve years.
“When you look at most of the statutory corporations that we have they certainly are not in compliance with the Finance [Administration] Act of 2007. Take for example the National Housing Corporation (NHC) which was established since 1997, up until this day no accounts have ever been tabled in Parliament with respect to its finances,” Richards charged.
In February, 2004 the NHC embarked on an EC $20 million home construction programme to construct “low-income homes” around St. Kitts. In April, 2005 NHC started an EC $16 million town house construction project which was financed through a loan from the St. Christopher and Nevis Social Security Board.
Richards contends that the government had guaranteed several loans on behalf of NHC and as recent as last year, had borrowed in excess of EC$50 million from the Social Security to build houses through NHC.
“That is not the first time the government would have borrowed such large sums of money from Social Security for the NHC, but no accounts are being placed before the public so that we can see how NHC is performing. This is indeed a sad state of affairs with respect to the NHC. How much is the company collecting in terms of mortgages? How much is the government repaying to Social Security and other institutions on a monthly basis? By what amount are these persons [home owners] in arrears? Is NHC a viable entity? We need to know answers to all of these questions.”
The Finance Administration Act of 2007 states that “within 6 months after the end of each financial year, the statutory body shall cause to be prepared the following statements together with proper and adequate explanatory notes; a statement of the assets and liabilities of the statutory body at the end of the financial year; a statement of the revenue and expenditure of the statutory body during the financial year; and such financial statements for the financial year as may be specified in writing by the Minister of Finance or the appropriate Minister”.
It also mandates statutory bodies to prepare annual reports on the implementation of the business plans and such other matters as they consider advisable or as the Minister of Finance or appropriate Minister directs and that the financial statements are to be audited.
Statutory bodies such as the Social Security Board and the Development Bank have submitted accounts to Parliament as stipulated. However, the NHC has never submitted any financial accounts to Parliament over its 12-year existence.
Richards stressed that since statutory bodies are arms of government that employ persons, and whose loans are mostly guaranteed by the government, they must be transparent in tabling their finances. This, he added would give the public a better picture as to the progress of the NHC.
SKNVibes contacted NHC General Manager Wayland Vaughan who confirmed that the statutory body has never tabled any accounts although he underscored that there are plans to do so in the near future.
“It is true we have not tabled any financial statements but we have produced accounts. In fact, we have an Accounts department, but it’s just that we have not brought forth the accounts. We are yet to sort out certain financial issues with the accounts but after that, we would be able to do so.”
Vaughan said although he is aware of the stipulation in the Finance Administration Act, since he had been at the Corporation, there had been no such financial statements produced and none were produced before his time there. Vaughan, who was appointed as General Manager in 2007, was preceded by Henry Mills.
