THE Housing Revolving Fund established to assist teachers who are members of the Guyana Teachers Union (GTU) with access to affordable housing, is likely to be managed by the Ministry of Finance’s Student Loans Agency.

This was disclosed on Monday by Finance Secretary, Dr. Hector Butts, during a hearing of the Public Accounts Committee (PAC). Dr. Butts noted that while there is $200M in the Fund, it has been untouched. He explained that no disbursement has been made because there is no appropriate agency to do so.

The Finance Secretary said, the Student Loans Agency is in the process of tiding some challenges it has with its systems and when that is completed in June, attention would be placed on having the Student Loans Agency manage the Revolving Fund.

“After that we will be looking at the student loan agency, once it handles itself, to perhaps take that on (Housing Revolving Fund) because they are involved in the issue of lending and receiving,” said Dr. Butts.

In 2011, the Housing Revolving Fund was established by virtue of an agreement between the government of Guyana and the GTU. Since then three cheques valued $200M were drawn on the account and deposited into a special account held at the Bank of Guyana.

The Audit Office in its 2015 report recommended that the Ministry of Education continues engagement with the Finance Secretary so progress can be made on the issue.

Permanent Secretary, Vibert Welch, appeared clueless on Monday before the PAC when he was asked by PAC Member Jermaine Figueira about the status of the Fund.

The PS explained that advice was sought from the Finance Secretary and noted that it is his intention to engage the GTU next week to work to have further discussions on the matter.
“…the money is in the account of the Bank of Guyana (BOG),” he said noting that the modalities have to be worked out.

Figueira questioned why till now, the GTU has not been able to benefit from the money. He asked, “When will this process start?” A question Welch could not answer but asked former PS of the Ministry of Education, Delma Nedd to answer.

Nedd who now serves as PS for the Ministry of Legal Affairs explained that there were some logistical issues in administering the Housing Revolving Fund and it was recommended that advice be sought from the Finance Secretary.

PAC Member, Nigel Dharamlall, then questioned the status of the agreement, a question Nedd was unable to answer. “I am not sure there is an update. I am not sure as to the current status,” she said. But as the questioning continued on the Revolving Fund, the substantive PS said, “I learnt of an agreement … [but] I did not read it”.

He was then asked by PAC member, Charandass Persaud, to explain the purpose of the Fund, to which he replied, “As I understand it, it is to help teachers to access low-cost housing or give them a loan to get their own house…”

Similarly, PAC Member, Audwin Rutherford, asked the PS to state what teachers can expect in the future.

“I would want to engage the GTU next week, because there are some other issues they requested I meet with them,” said Welch at which time, the Finance Secretary recommended that he (Welch) reads the agreement to better understand the conditions therein.

PS Welch was not in a position to tell the PAC who the signatories of the account are. When questioned by Edghill, he said “I ask to be allowed to find out and submit something to you…”