NHT – Spent $1.07 Billion for Incorrect Property Acquired from NHDC (Now HAJ)

Recommendation

1. In keeping with its responsibility under Section 6 of the Public Bodies Management and Accountability (PBMA) Act, the Board should take the necessary steps to enhance its due diligence process undertaken prior to investments and acquisition of land so as to maximise return on investment and ensure that all properties acquired are suitable for housing development. This due diligence should include an appraisal of all investment opportunities to determine, at a minimum, the cash flow impact and the expected rate of return on the investment.
2. The Board should also ensure that there is a robust records management system to provide evidence of the due diligence undertaken.
3. NHT’s Board should instruct management to develop an action plan for all properties that deemed unsuitable for affordable housing development.

JAMP Update

The NHT has reviewed its systems and processes. All investments that are being considered beneft from intense scrutiny and all decisions will demonstrate:

• The cash flow impact on the NHT
• The expected rate of return on the investment
• The assessed benefts to the NHT; and
• The alignment of decisions with the existing strategy

ATI Responses