A near $7 million debt to the National Insurance Scheme (NIS) and the absence of damage cover on thousands of rental units are among the problems facing the National Housing Corporation (NHC).

Minister of Housing and Lands Michael Lashley spoke of the problems yesterday as the House of Assembly continued debating the 2008-09 Estimates of Revenue
and Expenditure.

He said too that since April 2003, when the Insurance Corporation of Barbados' (ICB) coverage of more than 4 000 rental units expired, the properties had been without insurance.

He charged that allowing the insurance coverage to lapse was
an act of "recklessness" and a "national scandal".

He later told the WEEKEND NATION Government was moving to restore the coverage, which had a premium of close to $362 000.

At this stage, Shadow Minister of Housing and Lands Gline Clarke made the point that insurance was not compulsory
for homes. He also said that to fully insure some major Government properties, including the Parliament Buildings, "will break the Treasury".

Lashley also reported that the NHC was indebted to the NIS
"for the non-payment
of statutory obligations
in relation to the NIS".

He added: "It is now outstanding close
to $7 million. What happened was that
the National Housing Corporation had
to transfer property
to liquidate some of the money owed to the National Insurance Scheme."

He also made the claim that the board of the NHC, on the eve of the election, decided to award a $2 million contract to Ajax Construction Inc. for the Country Park Towers housing project at the corner of Country Road, St Michael.

He charged that the move broke the financial rules which stipulated that such projects had to go to tender. (TY)