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Rising concern about financial management of Housing Agency

More operational breaches have emerged at the state-run Housing Agency of  Jamaica (HAJ), which is reeling under huge financial losses.

RJR News has obtained a copy of an internal audit of  the company which revealed several breaches that have among, other things, resulted in some employees being overpaid.

The report has also highlighted the payment of millions of dollars by the Housing Agency for security services. They include the employment of a bodyguard for the Karl Bennett, the HAJ's Managing Director, during the 2014/2015 financial year.

According to the audit report, there was no evidence approval was sought from the Ministry of  Finance for that arrangement. The guard, who was employed from a private security firm, MICA Security Limited, was assigned a fully maintained motor vehicle. A toll tag is attached to the vehicle.

A breakdown shows the total amount paid in security service for the HAJ head was just over three million dollars.

Another $63,000 was paid for toll top-up, while petrol amounted to $332,000, and $446,000 was spent on repairing and servicing the vehicle.

The Housing Agency of  Jamaica has billions in liabilities, and is projected to lose $183 million this financial year.

The entity was established to provide low income housing. At Wednesday's meeting of  the Public Administration and Appropriations Committee (PAAC) it emerged that depositors' money, which should have been used to build houses, was instead used to finance operating expenses.

Mr. Bennett came under heavy criticism about the failure of the agency to make a profit, amid mounting losses. He explained the agency has been reducing its expenditure to offset the lack of  income.

 

                                                



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