Info missing on Government rental deals

GOVERNMENT spends close to half a billion dollars in rent annually.

Over $200 million was spent each year on 105 properties over the last seven years and this does not account for some of the more expensive rentals such as One Alexandra Place, St Clair, which is rented out to the Ministry of Public Utilities; and 3 Alexandra Place leased to the Personnel Department.

The government rents more than 300 properties.

In September 2019, the Opposition asked the Government to provide a list of all State rentals and the cost being paid to the properties.

A written answer to the Senate listed 350 properties at a monthly cost of $36 million.

Some of the monthly and annual rental figures were recently disclosed to UNC activist Ravi Balgobin-Maharaj who made formal requests to the Ministry of Public Administration in September 2022 under the Freedom of Information Act.

Balgobin-Maharaj was told by the Public Administration Ministry that while “due diligence” checks, however, no copies of the offer letter and/or acceptance letter were found for several rental agreements.

He said there was a definite need to decentralise and decongest the capital city and hence “the rental of buildings in other parts of the country could assist in this debilitating the problem which adversely affects the quality of life and productivity.”

In 2020, when he turned the sod for the new Ministry of Health’s headquarters at Queen’s Park Savannah, East, Port of Spain, the Prime Minister said TT was set to save millions in dollars in rental fees.

The issue of rental fees shot in the spotlight recently when Dr Rowley said some $45 million was spent on an unoccupied building on Park Street which was supposed to house the Office of the Director of Public Prosecutions.

Rowley said then that the government was reviewing the buildings rented for state departments to determine if they were occupied. He said the new Ministry of Health head office, likely to be opened in June, will reduce the rental costs significantly.

The rental of One Alexandra Place – estimated at $600,000 a month in 2020 and 3 Alexandra Place at $575,000 a month – has been used as a political football by the Opposition which has complained about these two properties – and two others – being owned by relatives of government minister Faris Al-Rawi. The properties are owned by companies where Al-Rawi’s wife, Mona Nahous Al-Rawi, is a director.

Al-Rawi, a former attorney general and now the Minister of Rural Development and Local Government, has repeatedly distanced himself from those transactions, saying took no part in the rental process and declared his interest.

In January 2020, Dr Rowley said to Parliament the UNC administration had rented the One Alexandra Place building and left it unoccupied.

In his request, Balgobin-Maharaj, who is represented by a team of attorneys, led by former attorney general Anand Ramlogan, SC, said it was clear that the Government’s rental of private property has “mushroomed into a state of significant mismanagement whereby value for money is not being realised.

“The possibility for corruption exists as government officials themselves stand to benefit.”

He has taken legal action over the failure to provide information on all government rentals.

But, he said with the significant rise in the rental of private properties largely, concentrated in Port of Spain, other social issues requiring urgent attention have arisen.

“As most government offices are located in the capital city, there is significant traffic each workday to enter the city and within the city also.

“This is further compounded whenever there are protests, demonstrations or early morning accidents on the major road arteries into the capital city.

“Traffic congestion will naturally result in increased pollution and loss of productive human hours. With more people in the capital, the security risk is also greater should there be any man-made or natural disaster.

To lessen the sting of these social issues, a solution may be the decentralisation of major government offices.

“The increased rental of private properties within the capital city is the antithesis of that possible solution.”

Rental for several ministries, departments and agencies were not included in the disclosure provided by the Public Administration Ministry, including the cost of renting offices for the Director of Public Prosecutions at Winsure Building, Richmond Street, Port of Spain, and San Fernando, among others.

The monthly rental figures also did not include value-added tax (VAT).

There were also no figures provided for the Ministry of Trade’s rental at Nicholas Towers, Port of Spain; the Service Commissions Departments in Tunapuna and Tobago; several under the Ministry of Health, mainly for the Chief Medical Officer in various districts; the Intellectual Property Office at Capital Plaza, Frederick Street, Port of Spain; buildings for the Judiciary’s Children’s Court in St Clair and Fyzabad; the Ministry of Foreign Affairs on Prada Street, St Clair; the Legal Aid and Advisory Authority’s offices in San Fernando and Scarborough, among others.

Info missing for following rental agreements:

Ministry of Works & Transport - Maintenance Division, 41-43 Sackville Street, Port of Spain.

Ministry of Rural Development and Local Government – Diego Martin Regional Corporation, Lots 17-18 LP 41 Diego Martin Main Road.

Ministry of Rural Development and Local Government – San Juan Laventille Regional Corporation, MTS Plaza, Aranguez Main Road.

Ministry of Rural Development and Local Government – Penal/Debe Regional Corporation, 218, SS Erin Road.

Ministry of Sport and Community Development – Head Office/General Administration, Nicholas Tower, Independence Square, Port of Spain.

Ministry of National Security – Special Branch and Intelligence Unit, comer Agra and Patna Streets, St James.

Ministry of National Security –Prison Administration, 10-14 Phillip Street, Port-of- Spain.

Ministry of National Security – Homicide Bureau, 33 Sackville Street, Port of Spain.

Ministry of National Security – Professional Standards Bureau, Police Complaints Unit, Finance Branch and the Human Resource Branch, I12 Henry Street, Port-of-Spain MATCO Building

Ministry of National Security – Computer Security Incident Response Team and Cadet Force Division, 68 Abercromby Street, Port of Spain.

Ministry of National Security – Trinidad and Tobago Defence Force, Field 17 Lot R.S.T Garden Road, Aranguez.

Ministry of National Security – Immigration Division, Tradezone Complex, El Socorro.

Ministry of National Security – Trinidad and Tobago Police Service, Oudai Trace, Aranguez.

Ministry of National Security – San Fernando Branch Homicide Bureau, 131 Coffee Street, San Fernando.

Ministry of National Security – Police Complaints Authority, 19A Mon Chagrin Street, San Fernando.

Ministry of National Security – Immigration Division, 14 Richardson Street, Point Fortin.

District Registrar Office (Arima) – 10-l0A Devenish Street, Arima.

Tax Appeal Board – 27 Frederick Street, Port of Spain.

Director of Public Prosecutions – Gulf City, Tobago.

Ministry of Social Development and Family Services – Lot 11 Naparima Mayaro Road, Rio Claro

Most expensive properties rented

1 The Ministry of Social Development and Family Services, at St Vincent Street, Port of Spain, where Colonial Life Insurance is the landlord, at a monthly rent of $729,316 or $8,751,792 annually, VAT exclusive.

2 Ministry of National Security for the Defence Force at Garden Road, Aranguez, rented from Broadway Properties.

3 Service Commissions Department, 59-61 Cipriani Boulevard, Port of Spain, from landlord Land Securities, at $518,000 a month or $6,216,000 a year.

4 Ministry of Housing and Urban Development, Housing Development Corporation, from Tatil Life Insurance Ltd at $5.376 million annually.

5 Caribbean Court of Justice, 134 Henry Street, Port of Spain, from landlord AE Hadeed Holdings Ltd, at $5.196 million annually.

6. Ministry of Health’s head office at 63 Park Street, Port of Spain, from Massy Realty at $4,725,888 annually.

7. Ministry of National Security for Special Branch and Intelligence Unit at the corner Agra and Patna Streets, St James, from N.J. Nahous Investments, at $4,272,000 annually.

8. Ministry of Agriculture, Land and Fisheries, for the Office of the Commissioner of State Lands, in El Socorro, from GV Holdings, at $4,008,000 annually.

9. Ministry of Finance’s Valuations Division, Estate Trace, Barataria, also from GV Holdings, at $3,956,472.

10. Ministry of National Security for the police service’s police complaints unit, its finance and human resources branch at MATCO building, Henry Street, Port of Spain, from Matouk Holdings Ltd, for $2,604,000 annually.

11. Ministry of Agriculture for the Food and Agriculture Organisation (FAO) at Frederick Street, from Winfield H Scott Trust, at $2,589,712.32 annually.

Highest-paid landlords

1 GV Holdings Limited with a monthly rental income of $806,003.68 or $9,672,044.16 annually.

2 Colonial Life Insurance at $729,316.00 monthly or $8,751,792. annually.

3 Broadway Properties at $613,700. monthly or $7,364,400.00 annually.

4. Land Securities Ltd at $518,000 monthly or $6,216,000.00 annually.

5 Tatil at $448,000.00 monthly or $5,376,000.00 annually.