Empty buildings cost Govt $65.3M

During the Public Accounts Committee meeting at Parliament Ali said a total of $65.3 million was paid for the rental of four unoccupied properties by ministries and departments over a period of time.

He said one of the ministries paid $53.5 million from December 2012 to July 2016.

He said those payments have since ceased.

“Public funds were not and are still not utilised in the most efficient way,” he said.

Ali said it takes too long for these ministries to get into the agreement to occupy these properties.

“The process of getting it equipped and getting Cabinet approval is a long period of time,” he said, “That is why they have payments being made to this amount for these properties.” He said in the case where $53.5 million was spent, the ministry was paying for a shell as the building needed to be outfitted to their specification.

“The process was taking a bit long. They had to obtain the necessary partitions and all the furniture and fixtures and each time they had to go back to Parliament to get approvals while the rent is being paid for that shell,” Ali said.

Deputy Auditor General Lorelly Pujadas explained the process that ministries go through when acquiring a rental property.

It involves the Property Real Estate Division who works with the Valuation Division. She said the entire process can be lengthy and time consuming and that could account for some of the delays and issues they have seen arising.

Committee chairman Dr Bhoe Tewarie asked if a simpler adjustment could be made so the contract is organised for rent to be paid from the time the building is outfitted according to specifications.

Pujadas said in response to Tewarie, “I agree with you that the process needs to be evaluated and reviewed. There needs to be a look at it holistically, map out the entire process, identify the key weakness points. It needs to be a coordinated effort between all the parties concerned to develop a system that would be more in keeping with up-to-date trends and account for things happening in a more efficient manner.”