The government has moved to tighten financial controls in the national housing repair and rebuilding programme, with all payments now being made through the Treasury.
Housing Minister Andrew John told Parliament that the change comes following the discovery that contractors were fully paid for houses that were never built and materials disbursed with “no regard for accountability”.
John gave the information in response to a question from opposition senator Carlos James about housing construction and rehabilitation projects for 2026, for houses damaged or destroyed by the eruption of La Soufriere volcano in April 2021 and Hurricane Beryl on July 1, 2024.
John said the Housing Ministry had inherited serious financial and operational problems from the Unity Labour Party administration, which was voted out of office in November, after 25 years.
He told lawmakers that the situation was so grave that housing officials are no longer allowed to make direct payments.
“I am pleased to announce, senator, that we are on track once again to rebuild people’s homes,” John said.
“We are on track. And not only are we on track now, but we are on track in a more responsible manner.”
John continued:
“I want us to make note of that… So much so that I was informed that we no longer at Housing are able to make direct payments for anybody. Everything now must go through the Treasury system so that we have proper accountability…
“Nobody going to sign up and tell people sign up anything and we have 10, 15 houses in one constituency that are purported to be built, but they can’t find them.”
John said one of the biggest constraints on the 2026 housing programme is a set of legacy contracts issued under the former government, where contractors received full payment but the houses were never delivered.
“We have discovered that what consumes a lot of our income that was budgeted for in 2026 are … contracts that were issued under the previous administration where houses were supposed to have been built, and those contracts were paid for in full,” he told Parliament.
John said the situation was under investigation and had already been referred to the Minister of National Security, St. Clair Leacock, who is also MP for Central Kingstown.
“I have presented already to our prime minister (Godwin Friday) what pertained in his constituency in Northern Grenadines,” John said, adding that he was “also in the process of presenting to Central Kingstown… some of the same constraints.”
“They are serious issues, and they will impact the outcome of our performance,” the housing minister said.
John said another major problem affecting the housing programme is large unpaid debts to suppliers and service providers, including overseas and local companies that provided building materials.
John presented the move to route all payments through the Treasury as part of a broader shift to restore discipline, accountability and resilience to the housing programme.
“This government is a government with a vision, is a government of action, and so we will overcome these problems,” he said.
He told Parliament that, going forward, the Treasury system and stricter contractual enforcement would be used to hold contractors accountable.
“Again, the challenge of contractors remain,” he said. “…I have to take some of these contracts to the Attorney General as well to ensure that we bind the contractors to their agreement.
“… I don’t [know] if they had any AG at the time when these were done – because I don’t know how people could get out of a contract where you say you have a contract and these people are paid,” John said. “It’s really, really troubling.”
The minister said roof repair and rehabilitation work has continued, with an emphasis on “rebuilding better” ahead of the hurricane season, which begins on June 1.
“The balance of housing action for this year will mainly be on retrofitting and rehabilitation,” he told Parliament.
John said assessors were being hired in every constituency and trained to ensure material allocations match actual needs, and follow‑up checks to confirm materials are being properly used.
“We are following up those persons who have received materials to ensure that they are using them and that they also take on board our advice for resilience,” the minister said.
“We are also encouraging you not just to rebuild, but to rebuild better, and make sure that you take into consideration that we may face another disaster, God forbid,” John.
With the new Treasury‑based payment system and tighter oversight, John said.
“I’m pleased to announce, senator, that we are on track once again to rebuild people’s homes,” he said. “We are on track – and not only are we on track now, but we are on track in a more responsible manner.”
