Tenants claim foul play over sale of Gordon flats

By ISAAC NICHOLAS
MORE than 700 men, women and children will be displaced at their Gordon flats as the National Housing Corporation has sold the prime land and property to a national businessman without notifying the tenants.
The prime property at Section 97 Lot 30 – a NHC property of 64 units at Gordons, next to the police barracks, market and the shopping centre —- was allegedly sold without going through the proper tender process.
“We suspect it was sold for less than K1 million, a highly deflated costs with no public tender of a prime property situated next to a police barracks, market, shopping areas and close to Central Government offices,” George Kakas representing the tenants, said.
Mune Dagari has been living there since 1967 and has grown up children and grandchildren still sharing the same unit.
He claimed that he started paying rentals of A$6 until now when he is paying K44 to the NHC.
Joe Gima has lived there since 1972 and now shares the flat with his children and grandchildren.
He said: “Where we will go, we don’t know? We make the Government and why is it (Government) turning its back on us?”
Mari Cecil from Oro province has been living at the flats since 1974.
She said the tenants were not given any notice about the sale of the flats or any eviction notice.
The tenants have formed a committee to fight “tooth and nail” about their plight including seeking a court injunction and petitioning the Prime Minister to asked Housing Minister and managing director to reverse their decision.
The tenants in a meeting yesterday said if they are forced out, they would seek refuge outside the residences of the board members of the NHC.
They also will be referring the matter to the Ombudsman Commission, Public Accounts Committee and the police fraud squad to investigate.
National Housing Corporation managing director Paul Asukusa confirmed the sale of the property saying it was the decision of the board.
“It is the board decision to sell the property after getting advice and recommendation from our property section.”
Mr Asukusa said most of the people living there are not legal tenants and the area was also a haven for criminals.
He said the property was sold through the normal process and it was purely a commercial decision made by the NHC board.
He said a qualified valuer put the cost at K400,000 and the NHC board made the decision to sell at K600,000 after mark-up price.
Mr Asukusa said previously the company wanted to purchase four properties, two in Boroko, one in Waigani and one at Gordon’s.
He said for Gordon’s property, he decided not to sell but it became obvious that it was not making money for the NHC.
“Let the private developer do up the property and if genuine tenants wants to stay, they can do so. It is a liability to NHC, who are meeting all the municipal costs.”
Mr Asukusa said the area was not a prime area because of criminal activities and “we have to change the image and attitude” of the people.
“There are more criminals than the legal tenants.
He said the units were also small with 64 units.
He said the 700 people supposedly affected was an inflated figure “to gain sympathy by those with vested interest”.
He said the K10–K20 million was a highly inflated cost.