14 November 2012

Uganda: National Housing Company Denies Govt Dividend

The Government will not get dividends from the National Housing and Construction Company (NHCC) for its 51% stake, unless it clears outstanding debts with the housing business venture.

MPs on the committee of commissions statutory authorities and state enterprises on Tuesdayy heard that NHCC has not paid the Government sh2.3b in dividends for 2010 and 2011 financial years over a sh6.6 billion debt.

The debt, which has accumulated over time, emanates from rent arrears of NHCC properties and the Government's failure to clear dues for properties purchased from the firm.

"Based on the cross indebtedness, the shareholders at the annual general meeting of 2009 resolved that the outstanding dividends be swapped with outstanding government debts," said Orono Otweyo, a director at NHCC.

"The Auditor General has also often raised the issue of outstanding government debt and dividends to the Government and advised that the issue be sorted out expeditiously," Orono added.

MPs heard that many of the debts like the sale of Mpumude Estates, date back to 1998.

Others the Government is yet to clear include State House Nakasero, the Uganda Land Commission and the gender ministry.

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