Details are now emerging about the performance of state-owned companies under the Unity Labour Party administration, which was voted out of office in November 2021 after 25 years.
Sources say that the NDP administration has been quietly evaluating the status of these state companies, with initial findings suggesting poor management under the Ralph Gonsalves government.
iWitness News received insight into the situation at the state-owned Housing and Land Development Corporation (HLDC), whose financial position a report described as “fragile, as demonstrated by wildly fluctuating profitability, weakening balance of sheet strength, and declining stakeholder equity”.
The HLDC, which has survived under multiple administrations across the political divide, was established to give effect to the planning and development of housing and land for residential and community purposes, especially for people of lower incomes.
However, the investigation has found that while the board of directors of HLDC is in line with statutory requirements, performance has been sub-optimal.
“In 2025, attendance at Board meetings was well below the average for all enterprises assessed and a quorum was barely achieved in many instances,” the report said.
“Strategic and operational planning is not practised at the HLDC. There is no record that the Corporation has ever developed a strategic plan, and annual work plans are not produced. Further, HLDC does not prepare annual reports on programmatic activities as required by statute,” the report further said.
It said HLDC plays a “constantly diminishing role” in managing government-funded housing projects.
Most major affordable government housing projects, such as “Lives to Live”, are executed directly by the Ministry of Housing, using private contractors.
iWitness News was reliably informed that the NDP is analysing several state companies, but a source, speaking on condition of anonymity, declined to say which ones, but indicated that they include the National Lotteries Authority.
“You might have seen news story [elsewhere in the media] giving some insights into the situation at Lotto,” the source told iWitness News.
The report on HLDC said that the company has not completed an audited financial statement since 2012, in violation of Act No.7 of 1976.
“Failure to complete a financial audit over such a long period of time is an adverse reflection on governance, transparency, and financial hygiene,” the report said.
Current liabilities at HLDC show a high balance of EC$6 million for accounts payable, indicating that the corporation is not paying its bills by due date, while the accounting records show a deferred interest balance of $9 million on a bank loan at the end of 2025”.
This means that the HLDC has postponed interest payments on its loans to the extent that those interests have risen to EC$9 million.
The HLDC’s financial performance was analysed using information from its management accounts for 2021-2025.
“The profitability of HLDC has been volatile from 2021 to 2025 with losses sustained in three of the five years,” the report said.
“The average profitability margin for the period was negative 16 per cent, underlining the entity’s struggle to remain financially buoyant.”
Projects are the HLDC’s main source of revenue.
“The seesawing of this source of income is the main cause of the volatility in profits,” the report said, noting that in 2022, projects contributed EC$5 million, declining to EC$532,000 in 2023, reporting no income in 2024, then climbing to EC$7 million in 2025.
“Against this background, revenue fluctuated significantly from year to year with a peak of $7,334,767 in 2022, followed by a sharp decline to $796,663 by 2024, and ending with an uptick to $4,349,670 in 2025.
In each of the five years ending 2005, the HLDC recorded a profit of EC$240,632 in 2021; a loss of EC$61,444 in 2022; a profit of EC$652,697 in 2023; a loss of EC$813,447 in 2024; and a loss of EC$209,675.
The report, however, said that HLDC’s liquidity was adequate over the period under review, “signifying that the entity had enough current assets to cover its short-term obligations.
Liquidity was particularly strong in 2021 and 2023.
“However, by 2025, the liquidity ratio was barely above the established benchmark, which meant that HLDC had just enough current assets to cover its short-term obligations, leaving very little wiggle room in the event of an adverse event.
“The significant increase in current assets and current liabilities between 2024 and 2025 shows that the financial situation needs to be monitored closely,” the report said.
Working capital is the difference between a company’s current assets and its current liabilities on its balance sheet. That is, the capital a business uses in its day-to-day trading operations.
The following table shows HLDC’s working capital in each of the years 2001 to 2015.
The report said HLDC’s balance sheet strength was “weakening due to increasing liabilities and accumulated losses.
“Current liabilities show a high balance of $6 million for accounts payable, indicating that HLDC is not paying its bills by the due date.
“Furthermore, the accounts show a deferred interest balance of $9 million at the end of 2025.
“In 2014, HLDC restructured a loan with St Vincent Cooperative Bank, and it appears that repayment is only being applied to the principal, with interest payments being deferred.
“Shareholders’ Equity declined from $5 million in 2023 to $3 million – a fall of 40 per cent. The erosion of equity value is because of annual operating and accumulated losses. The shareholders are therefore getting a negative return on their investment,” the report said.
The report said that for almost 50 years, HLDC has been at the forefront of providing low-income and no-income housing units to families throughout St. Vincent and the Grenadines.
HLDC is credited with spearheading the provision of almost 1,000 homes to families in need.
“Without the benefit of hard data, it is considered that HLDC has contributed to socioeconomic progress in delivering affordable housing, education, health, and social inclusion,” the report said.
It, however, concluded that HLDC now operates “largely as project manager for privately constructed middle-income homes” and these homeowners pay HLDC administrative and professional fees for service.
HLDC played an important role in the repair and reconstruction of 40 houses that were severely damaged by Hurricane Beryl in 2024 and the explosive eruption of La Soufrière Volcano in 2021.
“Housing construction is also either in progress or earmarked for 140 houses, including prefabricated houses,” the report said.
