NHE gets its house in order

The National Housing Enterprise (NHE) books are up to date for the first time in seven years. At the state enterprise’s annual meeting on Friday, CEO Gisbertus Mukulu was pleased to inform the urban and rural development minister Erastus Uutoni, that a milestone had been reached."We were behind with our financial statements, but this is a testament that we are now up to date," Mukulu said.During the meeting, NHE board chairperson Toska Sem handed over the annual reports from 2017 to 2023 to the minister.Uutoni praised the development and expressed gratitude for the validation of his efforts since 2020 to keep the enterprise alive.“The financial concerns are a thing of the past. The enterprise is now on a healthy financial footing, with access to enough loans to meet cash requirements. I think we can move forward and persevere. NHE must be an institution to be reckoned with," he said."I want you to reform and innovate. The target is set at 1 500 houses a year, but I want you to do more,” he said.The minister is seeking cheaper houses from NHE, ranging from N$150 000 to N$250 000, rather than the N$500 000 homes previously provided. “Even someone earning up to N$40 000 a month struggles to afford a house costing N$400 000 or N$500 000,” he said. “I want you to focus on that.”InnovateUutoni praised the development and expressed gratitude for the validation of his efforts since 2020 to keep the enterprise alive.“The financial concerns are a thing of the past. The enterprise is now on a healthy financial footing, with access to enough loans to meet cash requirements. I think we can move forward and persevere. NHE must be an institution to be reckoned with," he said."I want you to reform and innovate. The target is set at 1 500 houses a year, but I want you to do more,” he said.The minister is seeking cheaper houses from NHE, ranging from N$150 000 to N$250 000, rather than the N$500 000 homes previously provided. “Even someone earning up to N$40 000 a month struggles to afford a house costing N$400 000 or N$500 000,” he said. “I want you to focus on that.”Bleaker pictureDeputy finance minister Maureen Hinda-Mbuende delivered a speech that was more critical of NHE&#039;s recent performance, despite having previously worked for the state enterprise. "The delay in financial reporting that we have experienced over the past seven years has been a cause for concern," she said, adding, "I understand the frustrations of shareholders, the public, clients and others. There are several reasons for these delays. Legacy issues, including outdated financial systems, shifting economic policies, and structural reforms, created an environment where timely reporting was difficult," she said.NHE is still facing liquidity challenges, which hinder the enterprise’s ability to survive challenges and continue covering current liabilities, she said.Inefficiencies in managing costs must be addressed immediately, she added. NHE is at high risk considering the ratio of its debt to income, and “at the current rate of cash collection, it will take years to recover enough to settle all debts,” she warned.Expenses have exceeded profits for the last three years, resulting in losses of N$34.4 million in 2021, N$87.7 million in 2022 and again a deficit of more than N$38 million in 2023, which the deputy minister cited in her speech. This also hampers the enterprise&#039;s ability to offer more housing to the market, she added.More work neededOver the past seven years, NHE was only able to make 1 056 houses available, compared to a target of 5 000, “more than 70% below expectations,” she pointed out.Hinda-Mbuende warned that operational expenses must be brought under control, with regular audits, improved management and strengthened financial controls, reporting, and compliance needed. She praised the work done to bring the financial statements up to date, adding that it creates a true picture of the enterprise, which improves the potential for greater investment.Hinda-Mbuende and Uutoni agreed that Namibia’s housing backlog might be exaggerated.Uutoni called on NHE to work with the Namibia Statistics Agency to better determine the actual figure. Last year, the World Bank estimated Namibia’s housing backlog at 300 000 houses.

NHE gets its house in order

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Namibian Sun 2024-11-18

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NHE gets its house in order

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Namibian Sun 2024-11-18

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