SHC to go off divestiture list

Mr Kwamena Bartels, Minister of Works and Housing, said measures were being taken to exclude State Housing Company (SHC) from the list of companies to be divested.

He said this at the inauguration of a seven-member Board of Directors of the SHC.

The Minister said: "The government will remove constraints on the company and assist it to perform creditably as steps are being taken to take the company off the divestiture list."

He said the past government placed SHC on divestiture due to constraints such as high institutional indebtedness resulting from non-payment of SSNIT and other loans and unpaid compensations on lands acquired for it by past governments.

As a result SHC, which has a reputation of being the most wide spread real estate developer in the country with 71 estates and 28,436 houses to its credit, has now been relegated to the background in the housing industry, Mr Bartels noted.

The situation, he said, has affected the housing supply with its attendant non-affordability of houses built by private real estate developers.

"The NPP government believes that through effective team work, strategic planning and government's support, the new Board and Management staff can revive SHC and turn its fortunes around for the benefit of the Ghanaian worker, who can not afford a house on the private market.

"In place of the previous bureaucratic drift, the NPP housing policy seeks to connect with the plans of actual business sector initiatives in producing decent and affordable rental and homeownership houses for the majority of low and middle income families and workers," he said.

Mr Bartels said as part of efforts to revive the SHC, the government was spearheading a partnership venture between Interbeton bv of Holland and the SHC to build 3,000 rental and lease purchase houses in Accra over the next three years.

"SHC has also been added to a number of real state developers including Ghana Real Estate Developers Association (GREDA), Home Finance Company (HFC) and Tema Development Corporation (TDC) to benefit from a 50 million dollar loan from the United State."

He urged the new Board and Management to concentrate on the traditional role of house building and land development for lease and purchase and desist from the sale of plots.

"The Company must take the initiative to revise the ground rent of its houses sold and leased to bring up the current rates. This I believe will generate revenue for the company."

Mr Bartels charged the management of SHC to manage its estates well to ensure healthy environment, saying: "You must enforce planning and development regulation and control to prevent the littering of your estates with kiosks and uncontrolled extension works."

He cautioned the Board not to interfere with the daily operations of the company saying: "Your responsibility is to formulate policies and design plans and strategies for implementation by the management.

"In the past, interference by Board members and Ministers led to fraud and other adverse effects on the fortunes of the company. The days of political interference in the operations of government institutions are over."

Mr Kwesi Brew, a businessman and Chairman of the Board, expressed his appreciation to the government saying: "We are pleased to be given the opportunity to be part of the positive change process and we pledge to deliver to the best of our ability."

Mr Anthony Sarpong-Mensah, Acting Managing Director of SHC, said in the light of the new economic realities, SHC has re-oriented itself to strengthen its market presence.

"We have come up with contemporary house types ranging from one bedroom house to four bedroom detached two storey house with all facilities to meet the ever changing customer taste," he said.

"The company is also taking steps to enhance its debt collection methods and revenue generation strategies."

He said the company was exploring possibilities of carrying out other investment to generate income, such as developing and renting warehouses, offices, conference rooms and going into joint ventures.

SHC was established originally as the Gold Coast Housing Corporation in 1956 under the Gold Coast Housing Corporation Ordinance, 1955.

In 1995, SHC was converted to a limited liability company with the objective of operating a nation wide profitable land and housing development agency to make housing accessible and affordable to Ghanaians.