Sh900 bn state debt assessed

Dodoma. The Government owes the National Housing Corporation (NHC) Sh8.5 billion, being accumulated debts from the houses that the government rented, it was been revealed here yesterday.

Treasury Registrar Lawrence Mafuru said the government was in the process of verifying the debts totalling Sh900 billion which it owes various institutions and individuals with the objective of clearing them all, including the NHC debts.

Mr Mafuru made the remarks after the Parliamentary Public Accounts Committee (PAC) was told by NHC about the debt.

He added that the government Chief Internal Auditor was expected to finalise the verification exercise by  the end of this month. “We have agreed that during the first quarter of this financial year, we will be verifying the debts before starting  to pay them,” he said.

The state-owned real estate company also noted that the private sector owes it over Sh5 billion.

The members of the committee wanted to know when the government would settle the debt with the NHC. NHC director general, Mr Nehemiah Mchechu, assured the committee that they had fruitful discussions with the ministry of Finance and the Treasury Registrar was helpful on facilitating the settlement of the debt the government owes the company.

The PAC acting chairman, Mr Omari Kigua, directed the state-owned real estate firm to ensure that it it collects outstanding debts.