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MHC under investigation
By
Gedion Munthali - 30-07-2002 |
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The Anti-Corruption Bureau (ACB) is probing the Malawi Housing Corporation (MHC) for buying and intending to resale a warehouse and claims against supply of goods not delivered involving millions of kwacha, Housing Minister Peter Fachi said yesterday.
Addressing Blantyre MHC’s tenants, Fachi said in one case the organisation bought a warehouse from an unidentified Asian at K37 million and was later selling off the property at K25 million but the ACB intervened.
In another case, Fachi said, the same Asian was claiming a whopping K62 million from MHC for supply of goods but the amount later dropped to K53 million.
“When records were checked at the MHC it was discovered that goods only worthy K6 million were supplied,” said the minister. “A sum of K48 million was therefore being claimed for goods that were not supplied.”
“These are some of the things that are disturbing the MHC performance,” lamented Fachi before lashing at the ACB for delaying to finalise investigations in the two issues.
“I hope they will issue out a report soon so that the truth should be known and we can move forward.”
The meeting was convened by Fachi at the Blantyre City Assembly Office after tenants wrote to him, expressing “deep regret on the high percentage of house rent the MHC management have adjusted on our houses”.
Fachi blamed MHC for not hiking rents last year, plunging themselves in an awkward situation where they had to hike rents twice within a short time this year.
A representative of the tenants, Steven Nyirenda, told the minister that by hiking rentals on May 1 and from August 1 this year, together by 60 percent, the corporation was insensitive to the plight of its tenants. He added that MHC also wrote letters of eviction to all its tenants with rental arrears from one month.
MHC Board Chair Ruth Lemani told the gathering that her organisation did not hike the rents last year because government did not give its approval. She added that tenancy agreements provide that rents be paid in advance not in arrears.
She said that her organisation was reeling under financial difficulties which had forced it to “restructure to the bone”, including drastic expenditure cuts, retrenchments of 500 workers, withdrawal of telephones and vehicles from some of its managers.
She explained that government stopped subventions to the corporation way back in 1977 throwing the organisation into financial woes until 1995 when it was decided that corporations should commercialise where they had to charge market rates.
“We are trying as much as possible to assist you our tenants but we are failing. And with this hike we want to embark on a serious house maintenance exercise from August 1,” said Lemani, responding to a query on why some of the corporation’s house are not maintained.
But Fachi said he would recommend to cabinet that the rental hike be slashed by 20 percent to 40 percent, adding that the corporation should only evict those that are in three month rental arrears.
“Some of you have stayed in the houses for over 30 years, and therefore it is unfair that you should be evicted simply because you have failed to pay two months rentals. I think there is a way how this can be resolved amicably,” said Fachi.
He also disclosed that government was considering whether MHC should give tenants for free houses that they have occupied for over 30 years. |
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