Africa-Press – Namibia. <\/strong><\/span>Legislator Hidipo Hamata wants commerc ial banks removed from the government\u2019s housing scheme, which subsidises houses by up to two-thirds of a set maximum purchase price.<\/p>\nThe Popular Democratic Movement lawmaker ventilated his position in the National Assembly on Wednesday while putting questions to Prime Minister Saara Kuugongelwa- Amadhila.<\/p>\n
Hamata queri ed the sustainability of government\u2019s current housing subsidy, which has been under review for the past few years, as part of efforts to tighten the noose on unnecessary public expenditure.<\/p>\n
The Premier is expected to respond next Thursday.<\/p>\n
Through his line of questioning, Hamata painted a disturbing picture.<\/p>\n
\u201cGovernment subsidises housing for its employees by 66%. It means if the maximum value of the property is N$800 000, government pays N$528 000 and the employee pays N$272 000 over the purchase period,\u201d he set his lecture\u2019s tone to the august House.<\/p>\n
He continued: \u201cLet\u2019s imagine that I as government employee qualify for a housing subsidy of N$690 000. Technically, the government will cover N$455 400 and I will pay N$234 600, which is 34%.\u201d<\/p>\n
He nonetheless pointed out that the subsidy is subject to taxation.<\/p>\n
\u201cThis means that the actual contribution from the government employee will not necessarily be 34% exactly, but something like 36% to 38%,\u201d he asserted before confronting the elephant in the room.<\/p>\n
Hamata argued that the status quo simply exists to enrich banks, and not necessarily providing shelter for civil servants.<\/p>\n
\u201cIs the government\u2019s contribution only designed to cover the banks\u2019 interest over the purchase period? Can we not do away with the commercial banks and deal directly with the employee, or improve First Capital to address this issue?\u201d the outspoken parliamentarian wanted to know. First Capital Namibia is a financial services company specialising in providing asset management, investment banking and property management services.<\/p>\n
He also wanted to establish the logic behind taxing the housing subsidy.<\/p>\n
In 2018, Kuugongelwa-Amadhila confirmed that government was reviewing its employees\u2019 housing scheme.<\/p>\n
At the time, talk within government was that it was contemplating discontinuing the scheme as part of fiscal consolidation efforts.<\/p>\n
\u201cIt is either to reduce the housing subsidy, or completely cancel it. The other option is to leave it as is for the current employees, while those who newly join the public service will enjoy a reduced housing subsidy,\u201d one of the sources, who preferred anonymity, was quoted at the time.<\/p>\n
In an interview with Nampa, Kuugongelwa- Amadhila acknowledged the discussions around the housing benefit for civil servants, \u201cbut not precisely as you are putting it\u201d.<\/p>\n
\u201cThis is quite a very important issue, and a sensitive one indeed. I know of some queries or suggestions that were advanced to the Office of the Prime Minister concerning the housing benefit of public servants,\u201d the PM said.<\/p>\n
The queries to her office related more to whether the current practice was in full compliance with the adopted policies.<\/p>\n
\u201cI can dismiss any assertions that the Office of the Prime Minister or government are contemplating to do any such thing [discontinue the benefit],\u201d she stated.<\/p>\n
Kuugongelwa-Amadhila went on to say: \u201cI must hasten to add that Namibian labour law does not leave a discretion to any employer to unilaterally amend the benefits of employment of employees.\u201d<\/p>\n
When pressed further if in fact they were looking at scrapping the benefit or not, she replied: \u201cBecause this issue is regulated and is so important, we decided to look at it carefully to make sure that we deal with it in a manner that is not going to unilaterally take away things that are given in accordance with law to people because the law also applies to the State.\u201d<\/p>\n
She went on to urge civil servants \u201cnot to panic\u201d.<\/p>\n
Subsidies<\/p>\n
At present, government subsidises housing for its employees by 66% for a house to the maximum value of N$792 000. This means if an employee buys a house for N$792 000, government will pay N$522 720, while the employee pays the remaining N$269 280 over the purchase period.<\/p>\n
This has been costly to government and now appears unsustainable, especially under the prevailing precarious financial situation government finds itself in, sources say.<\/p>\n
There are more than 100 000 civil servants on government\u2019s payroll, making it the biggest employer in Namibia.<\/p>\n
Hamata\u2019s questions come at a time when Namibia is faced with a land crisis, one which has made it nearly impossible for most Namibians to access land or decent housing.<\/p>\n
This week, outgoing Government Institutions Pension Fund (GIPF) CEO David Nuyoma revealed that the fund is finalising its pension-backed home loan scheme.<\/p>\n
This scheme will allow members to use their pension as collateral to buy or renovate the property. It will hopefully be finalised before his departure.<\/p>\n
\u201cThis scheme will enable civil servants to upgrade their current shelters, and improve their quality of life. By providing accessible and affordable loan options, the scheme aims to enhance the livelihoods of civil servants and contribute to reducing the housing deficit within the civil service,\u201d Nuyoma said.<\/p>\n
Meanwhile, he also raised concern about the low uptake of home loans by civil servants, saying only 30% of them have decent shelter.<\/p>\n
However, through the efforts of the GIPF\u2019s development fund, they have been able to construct 700 houses in various locations for civil servants, he noted.<\/p>\n
For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Edward Mumbuu Africa-Press – Namibia. Legislator Hidipo Hamata wants commerc ial banks removed from the government\u2019s housing scheme, which subsidises houses by up to two-thirds of a set maximum purchase price. The Popular Democratic Movement lawmaker ventilated his position in the National Assembly on Wednesday while putting questions to Prime Minister Saara Kuugongelwa- Amadhila. Hamata […]<\/p>\n","protected":false},"author":84,"featured_media":48828,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[234,236,233],"class_list":["post-48829","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\n
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