Scheme consuming money

THE Comrade Trustee Services Ltd (CTSL) Toea housing scheme project had been using a lot of the fund’s money, says statutory manager Sitiveni Weleilakeba.
He revealed details of the K44 million housing project for defence force personnel during CTSL’s 2019 financial report presentation last Thursday.
“The Toea project, from where I see it, was consuming quite a lot of money,” Weleilakeba said.
“Money spent on the project was approximately K44 million.
“Out of that K44 million, only 158 lots were developed which means that on average, each lot cost K280,000 per allotment.
“If you look at the earning capacity of our members, that’s pretty high.
“When you do the eligibility testing, it is only eligible for about 97 of our members.
“That is not the intention of providing affordable homes for the members of the force.
“The purpose of affordable housing is to provide to all.
“The objective is commendable but that objective needs to be commercialised to make sure that they also gain from the other end.”
Weleilakeba said the project had been going on for three years.
“If you take that money and put it on a long-term government paper which pays 10 per cent, every year you should be earning K4.4 million,” he said.
“So for three years, we have lost about K12 million. From my perspective, that’s the thing that needs to be sorted out very quickly.
“Members are losing money tied up in sub-division work on the land, plus the homes that have been built.”
Meanwhile, 30 homes were built during the first stage of the project outside Taurama Barracks in the National Capital District.
Retired Lt-Col Ron Hosea was the only member to receive keys to a three-bedroom home he bought last October.