News

Rumours of improper sale of Gordon NHC flats ‘not true’

Acting Managing Director of the National Housing Corporation Elizabeth Bowada has dispelled widespread rumours particularly on social media about the sale of Gordons NHC staff flats.

Elizabeth Bowada

She said in a statement there was no impropriety done on the sale and the management maintained there was “no foul play” involved after allegations were circulated in the social media aggrieved individuals, mainly terminated and suspended officers who have vengeance against the NHC which is now trying to rid itself of unproductive manpower and legacy issues.

Ms Bowada explained: “The property, a staff allocated units at Section 59 allotment 08, Ogoa Street at Gordons, was initially approved for sale to an interested  purchaser by the previous management in 2015 at a value of K2.9 million.”

“The purchaser paid K308.660.00 slightly higher than the 10% deposit but backed off from the sale and filed court proceedings.”

“The management noted that the purchaser failed to honor requirements after being given ample time since 2015 to complete the sale following acceptance of offer and paying the required 10% deposit.”

She said the Corporation was at liberty to cancel the sale but instead the previous management went ahead and refunded portions of the deposit and in doing so, NHC has admitted liability.

Ms Bowada said acting managing director then Kenneth Cooke approved the refund paid in two portions totaling K113, 000, and hence, accepted liabilities instead of cancelling the sale and have the monies forfeited to NHC.

She said the purchaser then threatened to take up the matter in court seeking the following declarations;

  • If NHC unable to repay monies then the property to be sold on an open market
  • Independent real estate agent be appointed to advertise the land for sale and oversee sale
  • Proceeds of the sale to be paid into the National Court Trust account
  • Real Estate agent fees be paid from proceed of the sale
  • Refund of K308 660.00 be repaid with the interest of 10 per cent on the amount since the date of the purchaser sought to have his monies refunded
  • Costs of the proceedings be paid by NHC and the balance if any, be paid to NHC 

Ms Bowada said the NHC management viewed that this option may render NHC with limited say in the transaction and will ultimately lose out in the whole sale with limited financial benefits.

“Also coupled with the fact that the former acting MD Kenneth Cooke refunded a total of K113, 000 with a balance of K195, 000 still owing, hence liability admitted,” she said.

“In its meeting last year, the management endorsed to seek time to find the best way forward to conclude the matter as a win-win solution.”