NHT recovers $650 million from failed Dexim deal

The National Housing Trust (NHT) says it has recovered the $650 million it paid to developer Dexim Holdings Limited as an advance under a failed $2.5-billion agreement for the provision of 200 houses. 

The money, which was secured by a bond from a local bank, was repaid as part of a mediated settlement between the parties following a lawsuit brought by the NHT. 

In January, the NHT and Dexim advised the Supreme Court that they had reached an agreement. 

Along with the $650 million repayment, Dexim is also to pay over $20 million to the NHT. 

The NHT told The Gleaner that $20 million is "not yet due for payment". 

The NHT sued Dexim in September 2022 for breaching the terms of their two-year guaranteed purchase agreement which was signed in 2019 but extended for one year to 2022.

NHT alleged that the company failed to deliver any of the houses.

Dexim has rejected the allegations and insisted that its efforts to meet the August 2022 deadline were impacted by the COVID-19 pandemic. 

The state agency has been strongly criticised by the Opposition People's National Party over the agreement and for agreeing to a non-disclosure clause in the settlement, which blocked it from speaking about the deal or the settlement. 

Amid public backlash, the NHT said persons could access the settlement at the Supreme Court but the Court Administration Division rejected that, saying it cannot not release the settlement because of the non-disclosure clause. 

Commenting on the issue of access, former Solicitor General of Jamaica Michael Hylton, King's Counsel, explained that there are different court rules for mediation and what comes out of that process.

"The rules require that what takes place during the mediation – the communications the negotiations – must be kept confidential, but if the parties arrive at an agreement, they can decide whether that agreement should be confidential or not."

The NHT later released the document on February 9, following an Access to Information Request by The Gleaner. 

“The parties agree to maintain in confidence the content, terms, conditions, and the consideration for this settlement agreement,” noted the document, which is dated November 29, 2023.

It added: “Each party agrees to take every reasonable precaution to prevent disclosure to third parties and each agrees that there will be no publicity, directly or indirectly, concerning this settlement agreement, the discussions of the parties at mediation, or the matters in relation to the claim or the GPP (guaranteed purchase programme).”

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