By Lynford Simpson, Staff ReporterTHE GOVERNMENT yesterday announced sweeping changes to Operation PRIDE, its premier shelter programme aimed at providing thousands of housing solutions for mostly low-income earners.
Donald Buchanan, Water and Housing Minister, announced the changes in the House of Representatives during his contribution to the 2002/2003 Sectoral Debate.
His announcement comes just over three months after Dr. Karl Blythe, former Water and Housing Minister, resigned at the height of a scandal which engulfed the programme, following allegations of massive cost overruns on some PRIDE schemes.
Following the allegations, Prime Minister P.J. Patterson established the four-member Angus Commission to analyse more than 100 Operation PRIDE sites islandwide. This was done to determine their status, assess the amount and quality of work done by contractors and to find out whether they had delivered value for the funds paid out.
Mr. Buchanan told the House yesterday that the National Housing Development Corporation (NHDC) which manages PRIDE projects was "fully committed to the full implementation of the Angus Report". He said an exhaustive review of its findings had been completed "and we concur with most of its conclusions".
A PRIDE mortgage portfolio has been created to solidify the financial base of the organisation. Mr. Buchanan explained that the NHDC will provide mortgages of up to 25 years at eight to 10 per cent to persons who are not beneficiaries of the National Housing Trust (NHT).
Concurrently, a PRIDE Mortgage Support Unit has been established to maintain the integrity of the portfolio through timely mortgage payments by applying "innovative collection strategies and incentives".
"The PRIDE Mortgage Suppport Unit will also package beneficiaries who are qualified NHT contributors for the provision of NHT mortgages and payouts," Mr. Buchanan said.
He added that linkages will also be established through a savings promotion campaign, to allow building societies and credit unions to provide mortgages for both employed and self-employed persons who are not in a position to benefit from the NHT.
To date 40 projects comprising a total of 17,110 lots have been completed and handed over to beneficiaries who have completed their legal obligations and have received legal tenure.
Among the changes that have been implemented are:
The establishment of a new finance and audit sub-committee of the NHDC Board to strengthen the process of oversight and proper management of PRIDE schemes.
A reduction of the number of projects prioritised for completion from 116 to 72, with a 35 per cent reduction in the number of solutions earmarked for delivery.
All Operation PRIDE contractors must be selected through the National Contracts Committee in keeping with a Cabinet directive. Provident Societies may advise contractors of their choice to apply, but selection will be subject to public tender.
A return to the original mandate and concept wherein all new projects will be completed to minimum standard infrastructure. Beneficiaries will be required to access funds to build their own homes.
