–Details given about APNUAFC abysmal failure in housing, land
–Sold land far below market value to family, friends and top PNC supporters
–Hits back at the APNUAFC opposition
President Dr Mohamed Irfaan Ali has underlined that the PPP/C Government’s land policy has stringent conditions that apply to everyone since less than 10 per cent of the total land developed for housing goes to private developers.
The land policy that supports housing development is a key document that seeks to divest ownership of land to Guyanese from every walk of life.
“All the lands that we have allocated, no matter who gets it, once they breach this agreement, the CHPA already knows that they have to move towards repossession. Everyone is subject to the same condition,” he highlighted this during a live broadcast on Facebook Monday night.
The president was responding to comments made by the Leader of the Alliance for Change (AFC), Nigel Hughes, relating to the allocation of lands by the Central Housing and Planning Authority (CHPA) for a residential development at Ogle, East Coast Demerara.
The housing sector has seen massive investments in infrastructure, development, land allocation, and regularisation since 2020.
“When you look at the total acreage of lands that were developed and divested into the hands of ordinary Guyanese as against the acreage that would have been allocated for development by private developers…that allocation for private developers and commercial purposes is less than 10 per cent of the lands allocated…” he explained.
Investment in low-, middle-, and low-middle-income properties is cross-subsidised using the funds generated from the sale of property to private developers.
In the housing sector, the concept of cross-subsidisation is crucial.
Pointing to the contract inked with private developers, President Ali said that the process, and expression of expression and contract are the same that would have been signed by every developer.
In the agreement under the PPP/C Government, he highlighted that land cannot be transferred or vested without full payment.
Within 18 months of the agreement, the developers must substantially complete all the infrastructure including the installation of drainage, internal roads and streetlights.
Within three years, 70 per cent of the residential construction must be completed.
Additionally, the head of state noted that the purchase price for all the developers is $30 million per acre and 30 per cent must be deposited upon signing of the agreement.
The balance of the purchase price shall be paid to CHPA within 18 months of the date of the agreement and the substantial completion of infrastructural work.
Upon completion of these conditions, the title will then be granted to the purchaser.
The sale will then be published in the Official Gazette.
Controversial land, lease transactions
President Ali said that some of the very characters, like Nigel Hughes, participated in some of these transactions.
Lands were even sold when the Coalition lost the 2020 elections. He had proof of this in his hands on Monday.
During July 2020, 23 transactions were done for the sale and lease of lands at Plantain Ogle, Le Ressouvenir, and Chateau Margot along the East Coast corridor.
In some instances, he added that there wasn’t public tender or expression of interest for the transactions. The 23 transactions were entered into after the APNU/AFC Government was defeated by a vote of no confidence on December 21, 2018 in the National Assembly.
“These transactions were finalised mere days and hours before the general elections on March 2, 2020 and they were vested after the general elections date as well. It was vested by the APNU/AFC,” he pointed out.
The Coalition, he added, only collected less than 10 per cent of the total purchase price for most of these transactions.
In some instances, the Coalition vested the properties in the purchaser’s names and collected no monies with no conditions being met and only gave the purchasers 90 months to complete the development.
In seven instances, President Ali said that two of the applicants never even paid a lease fee of tens of millions of dollars.
Some 16 of them entered into agreements of sale for lands that were valued at more than $5.6 billion.
Additionally, payments were not made for five applicants.
“APNUAFC has the audacity to speak about policy and land development policy?” he questioned.
Nine of the 16 agreements were only vested between February and June 2020.
“That is how callous they were. And Nigel Hughes cannot play ignorance because his firm participated in some of the negotiations,” he highlighted.
Another seven land transactions were done where only $44 million was paid when the total purchase price was $2.8 billion.
At Plantation Peter’s Hall on the East Bank of Demerara, President Ali said that 22 transactions were done for lease lands there.
This transaction had a minimum term of 20 years, he added.
Again, he spotlighted, that the Coalition never invited public offers or expressions of interest for the lands and the lease agreement was prepared by an attorney who was not retained by NICIL.
He explained that the lease agreements were executed between May 1, 2018 and November 11, 2018.
The lease rental carried a nominal value for the price of state land, and the value varied for everyone.
As a matter of fact, the lease fee was a mere $12,000 monthly.
The government has a restrictive clause that is in favour of the state that protects the land.
However, in the agreement by NICIL, this clause was omitted by the previous government, permitting them to sublet, transfer or reassign the leases.
“Can you imagine? They didn’t own the lands. The lands were not vested to them. They were laying $12,000 per acre per month and they got permission to take out the protection of the land…” President Ali stated.
Of the 23 transactions, only 11 payments were made as of July 2020 for over 200 acres of prime commercial lands.
As of July 2020, only $36 million was received for lease rental against properties that were valued at more than $10 billion.
“That is what they must answer for,” he pointed out.
Linden lands sale
NICIL undertook 148 agreements of sale transactions in Linden, Region Ten. Of this amount, only 81 were vested and payments were not received for 44 of these transactions while 21 purchasers made partial payments.
The same strategy was repeated since there was no board representation or valuation and the agreement of land was executed between December 2018 and February 2020.
Region Three land Sale
At Wales in Region Three, NICIL undertook 15 transactions. Bids were not received for all the advertised lots and agreements of sale were executed with various individuals.
As of July 31, 2020, the total annual lease rental at Wales was $8.9 million of which only over $3 million was received.
PPPC record
Meanwhile, access to affordable housing has always been high on the government’s agenda.
Between 1993 and 1998, the PPP/C government regularised, invested and allocated over 21,000 house lots under economic and social crises.
The period between 2004 to 2014 saw tremendous investment and acceleration of the housing programme, with over $30 billion being invested.
As a result of the investments, housing stock increased from 154,000 in 1992 to 220,000 by 2012.
More than 115,000 house lots were allocated before the PPP/C administration left office in 2015.
Some 153 squatters’ settlements were regularised providing a stable environment for many families.
Contrastingly, between 2015 to 2020, the Coalition regularised 16 new squatters’ settlements and distributed 8,000 lots.
The housing sector has seen an investment of $240 billion in four years under the PPPC.
A total of new squatter settlements were regularised and distributed more than 40,000 lots.
Some 128,000 families have benefited from improved shelters since 2020.
The government increased the mortgage relief from $20 million to $30 million.
A total of 3,222 homes have been constructed for which the value has exceeded more than $22 billion.
Some 1,300 vouchers were disbursed to assist homeowners.
President Ali noted, “This did not happen by accident. This happened by a well thought out land policy…and the way we have managed the resources of our country.”
He alluded to the government’s Homestead Programme at Yarrowkabra along the Soesdyke-Linden Highway to build 500 housing units benefitting mostly single parents from Region Ten.
Over the years, the government has made remarkable progress in the housing sector, ensuring many families have a place to call home.
This year, more than $135 billion was allocated to the housing sector to bolster development countrywide.
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