THE sale of the Government flats in Gordon in the National Capital by the National Housing Corporation was illegal, Housing Minister Andrew Kumbakor said yesterday.And he urged the tenants not to move out.
Mr Kumbakor said the sale was in breach of various laws and procedures and he was confident it would be overturned.
The minister said this after more than 100 tenants, mostly school children in school uniforms, protested against the sale in a march to the NHC headquarters at Tokorara.
The children and mothers carried placards reading “we want our homes”, “NHC corrupt” among others, and marched to meet the management.
The protestors blocked the main entrance demanding an answer from the NHC top management.
Police arrived and invited leaders of the protesters in to meet the top management but the managing director and the board members were not present.
The tenants’ working committee including George Kakas and Lionel Yogomin argued that there was a “gentlemen’s agreement” between them and NHC managing director Paul Asukusa last January guaranteeing that the property will not be sold..
One tenant, John Mona argued with the management that they had a tenancy agreement in place and NHC as the landlord, should have the courtesy to notify the tenants of any sale in advance.
NHC officials asked them to go back and draw up a petition outlining their demands, since the protesters came without one.
But Minister Kumbakor, when contacted said the sale was illegal and would be revoked.
He said the previous board headed by chairman Nenes Wurin had agreed to sell that property, identified as sect 97 lot 30, with eight other properties in the city.
He said the board agreed that collectively, they were to sell for K400,000 only.
This decision was made in January last year, and when it was revealed, tenants protested and the NHC management gave an undertaking they would not sell.
Mr Kumbakor said sometime later the NHC quietly sold the Gordons property for K600,000 but not the others.
“This was very strange. I asked (Mr) Asukusa to explain this sale, but he has not. He does not listen to me. The allegations of improper and illegal sale will be dealt with by the board, and I am confident the board led by Richard Maru will deal with this competently,” he said.
He said the tenants could take the NHC to court over the issue.
Section 23 of the NHC Act requires that all NHC property valued at over K80,000 must be sold in accordance with the Public Finance Management Act.
The NHC Act also sets out a stringent procedure in which 11 steps must be followed before a property is sold.
Mr Kumbakor said this did not happen in this sale.
The minister also questioned a sale of a property in Madang for K36,000 which he accused the NHC officers of “pocketing” from the sale.
Mr Asukusa last night welcomed the call by the Minister for the investigation into the sale of the property
“There is no hidden agenda and the sale was done properly by the board.”