THE National Housing Trust (NHT) says 90 per cent of the $54 billion in employee contribution arrears now on its books are funds owed by Government up to 2007.

Acting managing director of the trust, Martin Miller, made the revelation to the Public Administration and Appropriations Committee (PAAC) of Parliament on Wednesday.

He explained that the trust has been in discussions with the Ministry of Finance over the roughly $48 billion owed. “It is something that we are likely to hear some more on, shortly,” he said.

Committee chairman, Edmund Bartlett, however, insisted that those funds “represent inflows that you’re not getting”, taking into consideration the $45 billion which the Government is taking from the NHT, over four years, to support the country’s budget .

“It’s a total leakage from you of approximately $94 billion. That must have some impact on your cash flows and deliverables,” he stated.

Government member Raymond Pryce took issue with Bartlett’s view, stating that, “The amount of $45 billion should not be added to the outstanding deductions because it is already a documented feature for which there was a parliamentary process. There was even an amendment to the NHT Act to allow for it, so to put that along with another amount and refer to it as leakage or otherwise is an unhelpful way to put it.”

Another Government member, Fitz Jackson also complained about the use of the term “leakage”, stating that, “it suggests that it has left the system and cannot be accounted for. This is an arrear that is accounted for,” he said.

In response, Bartlett said: “This is an accounting matter that is impatient of any kind of editorialising. The reality is that these are incomes that should be realised, and it also represents available resources for the job that you’re required to do, that you don’t have at your avail.”

Permanent Secretary in the Office of the Prime Minister, Onika Miller, explained that the NHT’s annual budget does take into account that there has been “a historic fallout of those inflows from the Government”. She said that only $16 billion out of the $48 billion was accumulated arrears since the remainder account for interest and penalties.

Miller said the NHT was acutely aware that the monies must be collected, and that it was even exploring the idea of land swaps to recover the debt.

“The Government has in the past made payments to the NHT to reduce the level of arrears that it has. These arrears have not occurred over a short space of time…and the Ministry of Finance recognises the amounts that are due,” she said. “I ask that the committee take into account that the negotiations are happening, and that we will be arriving at a payment plan,” she urged.

The committee chairman noted that it was not good enough to have discussions without set timelines or a formula for paying over of the funds. “In essence what this committee requires is a timeline when we can expect to see a resolution, if not certainly palpable indications of progress. What you have said to me, with respect, does not reflect any progress being made, except we are talking,” Bartlett told the chief accounting officer.

“You’re not speaking for this committee,” was Jackson’s retort, as he chided the chairman for insisting on specifics which he said the permanent secretary could not provide. “With her best intention [she] can’t answer anymore, and if she tries to answer anymore she’s in trouble. Don’t ask the PS to go beyond her remit,” he said.

Meanwhile, the NHT’s first quarter performance report for 2015/16, 1,469 new mortgages were created, which is 244 more than what was targeted for the period. The open market accounted for the highest number of new mortgages and construction loans the least.