THE Opposition People’s National Party (PNP) is refusing to let up as it continues to press for answers in relation to what it calls a “sweetheart deal” between the National Housing Trust (NHT) and developer Dexim Holdings Limited, while calling for the resignation of the trust’s managing director, Martin Miller.

This concerns a two-year guaranteed purchase agreement the NHT signed with Dexim Holdings in 2019 for the developer to provide 200 houses through its Out of the Blue development in Discovery Bay, St Ann, at a cost of $2.5 billion, with the trust committing to buy the houses at $12.5 million per unit.

In September 2022 the NHT sued Dexim Holdings for failing to deliver the houses despite advancing the company $650 million and alleged that the developer was selling units assigned to it. The matter was heard in court on January 9 where the parties agreed to end the contract and came to a settlement which included the signing of a non-disclosure agreement (NDA) which prevents the NHT and the contractor from commenting on the terms and conditions.

At a press conference at the West King’s House Road office of the Opposition leader in St Andrew on Wednesday, spokesperson on housing and sustainable living, Senator Floyd Morris, proposed the sacking of Miller as he raised concerns about the arrangement.

“This entire transaction between the NHT and Dexim Holdings raises several concerns to the Opposition and wider Jamaican community. We believe that what has taken place in this sweetheart deal constitutes a breach of transparency, accountability, and good governance,” he said.

He argued that as the political Administration that established the NHT in 1976, “under the distinguished leadership of the Most Honourable Michael Manley and as the Government in waiting, we cannot sit idly by and allow the contributors’ monies to be treated this way”.

He said the Opposition believes that what has transpired constitutes a plundering of the NHT’s funds and should not go unpunished.

“We would, therefore, like to know why did the NHT depart from its stated policy for the guaranteed purchase agreement with the developer by paying over $650 million before any of the houses were delivered. Was the proper due diligence done on the inspection of the slated property for development to ensure that everything was in order for a cost-effective delivery of the houses?” he asked.

He also questioned why there was a non-disclosure agreement in the settlement between the NHT and Dexim Holdings when the NHT is a public body and is managing public funds. He further asked if the NHT Board was privy to this NDA, and if the minister with responsibility for the NHT, who is Prime Minister Andrew Holness, was aware of the NDA.

“These questions must be answered fully for greater transparency to be brought on the matter. NHT has been one of the most prudent public sector institutions since its establishment in 1976, but we have seen for the past eight years where its focus has become obscure. In the obscuration of its focus some questionable decisions have been made,” he said.

He argued that “there is absolutely no way” that $650 million of contributors’ money should be delivered to a private developer to develop affordable housing for contributors to the trust “and all it is getting back in return is the principal and $20 million after five years”.

“A simple mathematical calculation reveals that the $20 million works out to $4 million per annum or a mere three per cent over five years. This is significantly less than what is charged to a developer on the public-private partnership agreement that the NHT charges, as the NHT charges between three to four per cent per annum to the developer,” he said.

He pointed out as well that, based on advertisements that the Opposition has seen from the developer, a unit is now being sold on the open market for approximately $25 million.

“Over 170 houses have been completed from reports, which means that when all are sold the developer will generate revenues of over $4 billion. Compare this to the $650 million plus $20 million that the NHT is receiving for its investment,” he said.

“If this is not a sweetheart deal, I don’t know what else is; if this is not a plunder of NHT funds, I don’t know what else is,” he added.

Morris also called for the full settlement to be released for public scrutiny and wants the NHT to ensure that in the future it conducts proper due diligence, including a fit and proper check on all the parties involved in the housing development.