Holness in hot seat

The parliamentary opposition is demanding that Prime Minister Andrew Holness disclose whether he was aware of a non-disclosure agreement (NDA) in a settlement between the National Housing Trust (NHT) and a private developer which followed a failed multibillion-dollar contract.

Holness is the portfolio minister for housing under which the NHT falls.

The Opposition yesterday turned the spotlight on Holness, arguing that the “botched” arrangement between the NHT and Dexim Holdings amounted to 200 NHT contributors being denied the opportunity to own their homes under his watch.

“And so the Government has a responsibility to say to us, to inform the public, what is it that the prime minister knew about the settlement, the terms and conditions. When is it that the prime minister knew about the terms and conditions of the settlement,” attorney-at-law Zuleika Jess said.

“Let us make no mistake about it, the prime minister is the minister with responsibility for the National Housing Trust. NHT reports directly to the prime minister, who has put the operations of the NHT squarely within the Office of the Prime Minister.”

Jess, the People’s National Party’s prospective candidate for St Elizabeth North Eastern, argued that ignorance in Holness’ case cannot be accepted as a defence.

“He does not have the luxury because the buck stops with the prime minister,” she said while speaking during a press conference at the Office of the Leader of the Opposition in St Andrew.

At the same time, Dr Floyd Morris, opposition spokesman on housing and sustainable living, called for the resignation of Martin Miller, the managing director of NHT.

Miller was a signatory of the NDA with Dexim Holdings, which was to deliver 200 houses under a $2.5-billion contract. The NDA has become the subject of contention.

Morris called for Miller to step down, citing his direct oversight of the “botched” arrangement.

“We believe that what has taken place in this sweetheart deal constitutes a breach of transparency, accountability, and good governance,” Morris said.

He said the agreement between the two parties and what followed amounted to a “plundering” of the NHT funds and should not go unpunished.

The NHT sued Dexim Holdings in September 2022 for alleged failure to deliver the 200 houses for which it advanced $650 million.

The two signed the advance to Dexim under a two-year guaranteed purchase agreement in August 2019.

The deadline was extended to August 2022.

In the settlement agreement dated November 29, 2023, the parties agreed to surrender the 2019 deal, meaning that the NHT would no longer buy Dexim’s houses.

In return, the NHT would reclaim the $650 million that was secured by a bond with a local bank.

The Sunday Gleaner brought the issue to light in a series of stories from January 14.

Morris questioned why the NHT departed from its stated policy under the guaranteed purchase programme, whether due diligence was done on the inspection of the property earmarked for the development and the existence of an NDA in NHT’s settlement with Dexim Holdings as a public body managing public funds.

Additionally, he questioned whether the NHT board was made aware of the settlement and whether Holness was aware of the NDA.

“We are calling for the managing director of the NHT, who is one of the signatories to the NDA, to resign for this botched arrangement with Dexim Holdings,” said Morris.

He, too, wants, among other things, the details of the settlement to be released for public scrutiny, for Holness to disclose whether he was aware of the settlement and the non-disclosure, the NHT to ensure that due diligence is done for all future guaranteed purchase programmes, and for the NHT to disclose whether it has similar issues with any other developer.

The NHT has maintained that the non-disclosure is consistent with the process of mediation and is a requirement of the rules of court.

However, Jess has argued that the mediation took place in June 2023 and the settlement agreement signed in November 2023.

“So it cannot be a defence to try and invoke the strictures of a mediation to use that as a guise under which the NHT claims that it cannot disclose. We’re not asking for disclosure of what took place at mediation. We’re asking about disclosure as it relates to the settlement agreement that was entered into on November 29, 2023,” she said.

kimone.francis@gleanerjm.com