State Housing might be doing well, but why killer unexplained ground rents?

Admitted. Who does not want to see State Owned Enterprises (SOE) do well? We all want to see every single SOE declaring outstanding results and paying good dividends to government to enable the state to support all sectors of the economy to prosper its citizens.

Stakeholder respect

But seriously, good business ethics and corporate responsibility require that all stakeholders are given due respect and recognition where it matters. It is for the good image of the business and adds to total business success. Where stakeholders are ignored or taken advantage of, a company plans to fail.

That is why I seriously believe our only State Housing Company is not being fair if it continues to ignore its critical stakeholders whose sure revenue they can close their eyes to receive as a sure inflow into their internally generated funds each year, with very little sweat.

The SHC’s “killer” increases this year in land rents without prior information to its stakeholders is regrettable and a clear sign of least respect for them, as if they do not matter to their business.

SHC needs stakeholder support to do well in order to discharge its mandate. Their doing well in turn robs well on the millions of citizens who buy lands from them or are looking for reasonable housing. One is aware that the management of SHC in recent days is doing a marvellous job to provide affordable dream housing for the salaried worker across the country.

Land rent

However, their application of arbitrariness in their fixing of land rent is unfair and unreasonable. I have spoken to a few people in recent times, two of whom I met at the car park of the Company and who had gone in that day to settle their one-year land rent only to be confronted with the shock of a 300 per cent increase.

Normal and reasonable increases after a period of three to four years are something any customer will accept under normal circumstances. However, when the unexpected increase goes up by 300 per cent, one begins to wonder.

Like a “take it or leave it” shrugging off-the-shoulder attitude and a master of all I survey posturing, the Company, with no notice to its stakeholders, has increased its ground rent for its second-class residential occupiers from ¢200 to ¢600. The second-class leaseholders, I was told, cover their leasehold properties in Kaneshie, Dansoman, Adenta and the like.

They have likewise increased the same for their leaseholders in their first-class residential areas which apparently include Labone, Cantonments and Ringway Estates. My understanding is that stakeholders in these areas are being asked to pay for similar percentage increases.

Their claim is that the Company has not increased their ground rent for three to four years. Meanwhile, checks I have made on the same issue confirm that ground rent for classy well maintained Estate development in East Airport on the Spintex Road has remained ¢200 for over four years.

Co-existence

SHC’s business presence exists in communities for communities that have co-existed as business partners for half a century or more.  The least the Company could do in matters like this astronomical increase in land rents was to have informed its stakeholders to prepare their minds and hearts.

We all live in a difficult world economy where families are already burdened.  But for goodness sake, a 300 per cent increase in one household expense is burdensome.

Over the last twelve years or so, the Company has applied gradual increases of between 50 to 100 per cent for land rent. To move from that to applying 300 per cent at a go looks like a betrayal.

Unfortunately, in a situation like this, the landowners are the underdogs. They have no chance whatsoever to complain or push for a downward review. It is non-negotiable because the option to switch service providers is not available here. Otherwise, one can bet the numbers that would have abandoned SHC.

This reminds me of a local song which says houses are not like boxes or bags. Otherwise, people would have long travelled elsewhere with theirs, especially where payment of ground rent is fixed arbitrarily with no regard and no community development.

Comparably, yes, one has paid annual property rates for years and still no clear developments in some of our communities to compensate. However, the good with property rates is that at least no arbitrary increase has been demanded for some years now though they can equally apply the take it or leave it posturing.

Stakeholder engagement is very important when it comes to co-existence between a company and its stakeholders. In that relationship, respect and trust are pretty important.

For as long as SHC decides to do business in communities, building homes or selling leasehold lands, it is important to maintain mutual respect. It is a case of live and let’s live.