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Govít owes UDC millions

Published: Thursday November 22, 2012 | 9:14 am Comments 0

A review of the Urban Development Corporationís books by the Auditor Generalís Department has shown that the Government owes millions in rent to the agency.

The report highlights that the government has failed to pay $137 million in rent for office spaces it occupies.

It was noted that this accounted for 71 per cent of the total $194 million owed to the Urban Development Corporation (UDC) in receivables.

The remaining 29 per cent, which translates to $56 million, is owed by private tenants.

It was noted that $148 million of the total receivables has been outstanding for more than 120 days.

The report also pointed out that the UDC does not have an effective system in place to ensure that contractual agreements with tenants are kept current.

The department said a list provided by the Corporation shows that 116 properties are leased to government and private tenants.

It said 46 of those leases have expired and there were no formal agreements for another 23 of the properties.

The Auditor Generalís Department said the failure to collect outstanding rent is resulting in a reduction in the value of the assets and prevents the UDC from meeting its objective of transforming its receivables into cash or tangible assets.

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