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Parliamentary C’ttee questions GH¢272,000 for cost of 2-bedroom under housing project

Housing Project

The Parliamentary Committee on Works and Housing is questioning the high cost of some of government’s affordable houses currently on sale.

The price of a two-bedroom house at the Borteyman Affordable Housing Project which was completed by the Social Security and National Insurance Trust, SSNIT, is being sold at GH¢272,000, while a one-bedroom house is going for GH¢175,000.

Read: Government to roll out housing policy for teachers — Akufo-Addo

According to the committee, the high cost of these houses defeats the entire concept of affordable housing, which is targeted at providing housing to low-income public sector workers who have a constant stream of income and could pay through installments or mortgage.

The committee in its approval of the 2020 budget estimates of the Ministry of Works and Housing expressed the fear that other affordable housing projects such as the one at Kpone and Saglemi may not come cheap too.

The rising prices of houses, the Committee said, could partially be blamed on the delay in the completion of these projects which they say increases the financing costs which then translates into expensive prices.

Delay in Saglemi project

The 5,000 housing unit project at Saglemi in the Greater Accra region has stalled over allegations that the country was shortchanged with the provision of less than 1,500 housing units as against the initial agreement of 5,000.

Read: Government hails FCCL affordable housing project

The Minister for Works and Housing had earlier this year given indications that the government intends to terminate the existing contract for the Saglemi housing project.

“We realized that dubious shortchange in terms of the contract sum and the delivery of the housing units and we believe that there are challenges of value for money analysis. So we have made reference to the Attorney General for advice because we intend terminating the contract, taking over the project for completion and when we see any malfeasance, we will address it,” he said.

The Works and Housing Ministry, however assured the Parliamentary Committee that a value for money audit is being done and the remaining works on the project will be completed after the audit.

 

Source: www.citibusinessnews.com