Council rescinds housing deal with NBS

Council rescinds housing deal with NBS
Published: 03 July 2018
Harare City Council has rescinded its decision to enter into partnership with the National Building Society (NBS) to develop over 300 residential stands for low-income earners after council accused the bank of constantly shifting goal posts.

According to recent minutes of the education, health, housing and community services and licensing committee, director of housing and social development Mr Edmore Nhekairo said NBS was now demanding full ownership of the stands, as opposed to an earlier arrangement where council would remain as owner of the land.

The development comes after the city entered into a Public Private Partnership last year with NBS as well as FBC Group (Pvt) Ltd for purposes of low-cost housing development where the banks would provide mortgages to home seekers on the city's housing waiting list.

NBS was to develop 333 stands in St Martins within 18 months, while FBC would develop 858 stands as the initial project was targeting more than 1 200 stands.

Mr Nhekairo said the deal with NBS had since collapsed.

"A memorandum of agreement for the partnership was drafted and sent to parties for comments," he said.

"Instead of opting for a partnership as was expressed in their initial intent, the National Building Society was now pushing for an outright purchase of the stands, a position which was contrary to the council resolution on the intended partnership.

"In other instances where the NBS was agreeing to the partnership model, their demands were stringent and could result in the stripping off of the beneficiaries."

Mr Nhekairo said because of the development, council was left with no other option, but to allocate the residential stands. In order to curtail the misappropriation of funds collected from members, Mr Nhekairo said the city would open a bank account in the name of the housing pay scheme jointly managed by his department and that of the finance department.
- the herald
Tags: NBS,


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