Government has defended its decision to privatise the Saglemi Housing Project.
According to the deputy Finance Minister, John Kumah, the decision is the best, given the current circumstances.
Speaking on Saturday, November 26, 2022, during Newsfile, he
explained that “the project is no longer affordable per the arrangement that has happened to it because if you divide $200 million by 10,000, you are going to get it at $10,000, and they reviewed it to 1,500 (housing units) which makes
it up (from) $40,000 to $50,000 per unit. So how affordable can
that be?”
“So in the present circumstances, the best option is to bring the
private sector in,” he said.
He, however, assured the citizenry that the government will be transparent in choosing a buyer.
The Saglemi Housing Project was initiated by the erstwhile Mahama Administration.
It was originally meant to be a 10,000 residential unit later
reviewed as a 5,000 unit facility to address the country’s housing
deficit.
However, after the Mahama administration left office, the project was abandoned and left to rot, despite various assurances by the current administration to complete it.
Government initially blamed its failure to complete it on lack of
financial resources.
In the latest development, the government, through the Works
and Housing Minister, Francis Asenso Boakye announced plans to privatise the project.
“Government has decided to – Explore the possibility of selling the Saglemi Housing Project, covering the 1,506 housing units, at the current value to a private sector entity to complete and sell the housing units to the public, at no further cost to the State,” Mr
Asenso-Boakye said at a press briefing in Accra.
“In furtherance of the above, and to facilitate the processes, a Technical Working Team has been set-up, comprising professionals and experts to oversee and spearhead all engagements required for the completion of the project.
This is being done with the goal of ensuring transparency and accountability, while guaranteeing value for money in the completion of the project,” he added.
Subsequently, the Minority in Parliament issued a caution to the
government to rescind its decision.
Minority Spokesperson for Works and Housing, Vincent Oppong
Asamoah argued that the project is viable therefore, “government should be compelled to look for funds to complete the project instead of privatisation.”