K205mil for rent ‘not enough’

The National Business

By DALE LUMA
THE K205 million budgeted for rentals of properties in the 2022 National Budget is not enough, says Nambawan Super Ltd (NSL) chief investment officer David Kitchnoge.
NSL alone is owed K160 million and Kitchnoge said the figure appropriated would not cater for them and other landlords which the State is a tenant.
He said the State’s accumulative rental arrears to the fund would reach K230 million by the end of next year if it does to pay up.
Treasury secretary Dairi Vele told The National that the figure allocated “was all that we could fit in for next year considering all government priorities.”
The following are NSL-owned buildings rented by the state:

  • REVENUE Haus occupied by Internal Revenue Commission;
  • VULUPINDI Haus occupied by Finance Department and Department of National Planning;
  • TREASURY Haus occupied by Department of Treasury;
  • EDA Tano Haus occupied by Lands Department;
  • AOPI Centre occupied by Health Department and Department of Higher Education; and,
  • NAMBAWAN Supa Ltd Haus in Lae occupied by Ombudsman Commission, Independent Consumer and Competition Commission (ICCC) and Auditor General.

“There are three areas of appropriations in the 2022 National Budget that are of interest to us,” Kitchnoge said.
“Number one, is the reduction of the unfunded balances.
“This relates to employer contributions prior to 1999 which were not funded and now needs to be funded as members leave the fund.
“This amount is a bit more than K1 billion.
“State has budgeted to reduce this by K150 million in 2022.
“It has been reducing the outstanding for several years now so good to see this being budgeted for again in 2022.
“Number two, is the current employer contributions.
“This will be automated with public servants payroll so will be paid to Nambawan Super as they run their pays fortnightly,” Kitchnoge said.
“They have budgets for K325 million.
“Good to see them allocating money for this.
“Number three is the unpaid rental arrears.
“State owes the fund K160 million in unpaid rentals for our buildings in which State is a tenant,” he said.
“This number will increase to K170 million by year end and to K230 million by end of 2022 if not paid.”
“We are in negotiations with the State at the moment to have some of the outstanding amounts paid this year and will consider our options.”