Homeowners relieved as DN saga ends

THE nineteen homeowners who were on the verge of losing their houses after the property developer defaulted on a bank loan, were all smiles after negotiations, spearheaded by government, came to an amicable settlement. The property developer, DN International, failed to pay Fina Bank, the financier of the housing project – Hill View estates – located in Kabuga, a suburb on the outskirts of Kigali.Each home was purchased from DN International at a cost of Rwf55 million in 2007.Following the breach of contract, Fina Bank put the 19 houses up for public auction. The homeowners, some of whom had paid the full amount, then asked government to intervene. The auction was suspended and this week a happy ending was announced. The Acting Chief Executive Officer of Rwanda Development Board, Claire Akamanzi, Wednesday, announced that a new deal had been brokered to put the issue to rest after another developer, B$B Heritage bought out Rwf500 million of the heavily indebted DN International loan from Fina Bank.“A new investor, B$B Heritage, has agreed to buy out the DN International loan from Fina Bank but in exchange, the investor will be given a piece of land in Kagugu,” Akamanzi disclosed.The 33.8 hectare parcel of land handed to B$B initially belonged to two prominent businessmen, Uzziah Iyamuremye and Paul Muvunyi.The duo had initially sold the parcel of land to DN International but the developer failed to pay the full amount and remained with an outstanding debt of about Rwf100 million.As part of negotiations to resolve the saga, the two businessmen agreed to a Rwf80 million payout, forfeiting Rwf20 million.Other stakeholders too had to compromise during the negotiations.“Fina Bank agreed to put in Rwf60 million while B$B and Rwanda Development Bank released Rwf10 million each to reach what was required,” Tharcisse Karugarama, the Minister of Justice and Attorney General said. He added, “Of course everybody had to lose something small to at least get something big.” Meanwhile, DN International had accumulated a tax debt totaling Rwf300 million. The interest and penalties accrued on the unpaid taxes were waived by Rwanda Revenue Authority to help bring the saga to an end.Following the agreement, all involved parties signed a memorandum of understanding and a commitment to implement the agreement.However, Karugarama told the homeowners that prior to being handed the title deeds, they are required to pay a property tax to RRA amounting to Rwf2.2 million for each unit.“There is no deadline as to when these people should pay this amount, they have been given time,” said Karugarama.Currently, DN International’s debts totals to Rwf1.2 billion.Although the Chief Executive Officer of DN International, Nathan Lloyd, was once taken into custody, he managed to jump bail and fled out of the country. Karugarama, however, promised that the government would intensify efforts re-arrest him.One of the homeowners, Patricia Hajabakiga, said; “although we are getting our houses – which we highly appreciate – the houses are in a very sorry state, the sewage system is in a very worrying state.”According to Jasani Nilesh, a shareholder in B$B Heritage, his company intends to put up a $30 million real estate project in its newly acquired parcel of land in Kagugu, Kigali.

National

Homeowners relieved as DN saga ends