{UAH} Non implementation of the Law - N (Libyian) HCC

The company also made a loss of about Shs14 billion ($5 million) in a joint venture with another firm, MKP Builders Limited, on some unnamed project.

The government owns 51 per cent of NHCC while the Libyan government has 49 per cent. The NHCC was established 50 years ago as a fully state-owned enterprise to increase housing coverage and revamp the housing industry in the country.

A review of its books of accounts, the report reveals, NHCC has failed to recover debts including rent proceeds from government departments notably Ministry of Defence and State House and sitting tenants in Buganda Road flats. The unrecovered rent arrears amount to Shs2.8 billion.

The NHCC's Naalya Pride and Namungoona phase IV projects, which received Shs2.4 billion and Shs64 million, respectively in pre-sale revenues to create a turnaround of the business, have also stalled after several customers pulled out.
Mr Muwanga says Shs1.6 billion was paid back which worsened the company's liquidity status.
NHCC also made extended losses on some of its ongoing projects including Bugolobi Spring Valley apartments, Kiwana Housing Estate and Kyambogo Housing Estate after they overshot the budgeted costs by 61 per cent or Shs25.3 billion. Mr Muwanga stated that NHCC management did not explain this mishap.

Other stark quotations in the report include the Shs12.9 billion debts NHCC has failed to collect from government with slim chances of recovery and the delayed payment of suppliers who are demanding Shs137m.

http://www.monitor.co.ug/News/National/National-Housing-needs-rescue-from-closure---AG/-/688334/2682848/-/gn89gr/-/index.html

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Bwanika Nakyesawa Luwero

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