By Christiana Ekpa
The House of Representatives, yesterday constituted an ad-hoc committee to investigate alleged corrupt practices of real estate developers within the Federal Capital Territory, FCT, Abuja.
The House decision was as a result of series of complaints on misconduct by the developers.
The House in a motion moved by Hon. Boma Goodhead (Rivers State PDP) at the plenary, said that complaints of misrepresentation, deceit, fraud, non- delivery, incessant breach of contracts with zero consequences, impunity, unethical/illegal clauses that offer no protection for the client’s investment, money laundering, poor quality houses among others have continued to dominate the real sector.
Speaker of the House, Femi Gbajabiamila named Hon. Blessing Onu as the chairman of the Adhoc Committee.
The Committee was also saddled with the responsibility of creating a forum for members of public to lodge complaints against such fraudulent developers and also investigate developers suspected of violating applicable laws and liaise with enforcement agencies with a view to prosecuting them.
The Committee will also work with relevant stakeholders and MDAs towards formulating a law, issuing guidelines or other appropriate legislations/regulations for the sector to enhance monitoring, regulation, and ensure protection of investors of subscribers from illegal transactions and eliminate unethical real estate practices in the FCT.
To essentially achieve the objective, the Committee will laise with relevant MDAs to revisit the issue of compiling a database on property transactions and newly approved developments while also ensuring that the developers were duly licensed before engaging in the practice.
It will also liaise with other relevant NFIU, EFCC, FMBN, NHF, ICPC towards plugging financial crime in the sector.
Moving the motion earlier, Hon. Goodhead said lack of regulation has resulted to financial losses.
“The harsh inhumane implication of these malpractices on individuals who having paid in full for homes continue to pay rent in their respective homes while waiting for their houses to be completed with no clear delivery date as the contracts are constantly being breached.
“Lack of regulation or ineffective regulations, impunity, and lack of accountability by real estate developers has resulted in financial losses and caused and continues to cause untold hardships on investors.
“Despite the operation of supervisory agencies such as FCT Hrban and Regional Department, Federal Capital Development Authority (FCDA), EFCC, the malpractices in the real estate sector persists”, she said.
When put to voice vote, the motion recieved overwhelming support of the House and was passed.
