The National Housing Corporation (NHC) is working to address more than VT700 million in outstanding debt, as its new board begins a review of the corporation’s financial obligations.

NHC Chairman Peter Sakita told VBTC News that a new investigation team has been appointed to examine the debts, with notices for claims expected to be issued soon.

New Board Reviews Outstanding Debt

Sakita said the corporation’s debt is substantial, with the Government providing VT100 million to help address part of the outstanding amount.

He said a large portion of the debt is related to VAT, while some outstanding obligations are linked to individuals and properties whose ownership transfers have not been completed.

According to Sakita, some properties in Freshwater have never been transferred to their owners, leaving the corporation responsible for costs such as land rent.

He said the corporation will pay some of the outstanding amounts and seek support through Parliament to have other debts written off, particularly those made up largely of interest.

Housing Shortage Remains a Challenge

The debt situation comes as Vanuatu continues to face challenges in providing affordable housing.

A Household Income and Expenditure Survey report shows that more than 10,000 men, women and children are living in makeshift houses in Port Vila.

Some residents, who did not want to be identified, told VBTC News that high rental and land prices are making it difficult for many families to secure proper housing.

Sakita said the NHC is working on plans to provide more affordable housing as it addresses its financial position.

New Subdivision Plans

The NHC Chairman said the corporation will submit plans for a new subdivision at Etas, along with several other locations.

He referred to the Mele-Waisisi area, where a previous government had approved several plots to be made available to people, as well as other potential areas.

The plans are part of the corporation’s efforts to increase access to housing and property ownership.

Rebuilding Public Trust

Sakita acknowledged that the NHC has significant work ahead to rebuild public trust after what he described as a long period in which the corporation failed to deliver on its purpose.

He said the corporation wants to improve the situation of families by making housing more reasonable and affordable for people earning between VT4,000 and VT5,000 per fortnight.

“The status of families should be improved, with housing made reasonable and affordable for people who earn VT4,000 to VT5,000 per fortnight.”

The National Housing Corporation was established to provide people with better housing and opportunities to own property.

The new board and management are now working to address the corporation’s outstanding debts while developing new housing and subdivision plans.