SHALIZA HASSANALI
Senior Investigative Reporter
shaliza.hassanali@guardian.co.tt
The State has been enforcing stricter rules on delinquent tenants of New City Mall and Eastside Plaza, Port-of-Spain, who have been behind on their rent for nine years, totalling more than $4 million.
The rent is owed for the period 2015 through February 29, 2024. Port-of-Spain Shopping Complex Ltd (POSSCL), the company responsible for the shopping centres on Charlotte Street and Independence Square owned by the Government, padlocked the doors of the stores and booths belonging to several tenants who have not been paying their rent. POSSCL falls under the ambit of the Ministry of Housing and Urban Development.
Tenants were also issued pre-action protocol letters by POSSCL’s corporate secretary and attorney Amanda La Caille, who has advised that legal action could be initiated against them for failing to settle outstanding debts. This legal letter costs each tenant $1,000, as the POSSCL insisted that neither taxpayers nor the Government should be saddled with this fee.
Eastside Plaza has 136 tenants while 102 tenants rent in New City Mall.
Chairman of the POSSCL Montgomery Guy said the Government needed to recover its outstanding debt. Last year, Guy said the POSSCL held meetings with the tenants on the matter.
“Some tenants for years, they never paid. So we advised that this had to be corrected.” Guy said the rent owed by tenants between 2015 and February 29, 2024, amounted to $4.3 million. The monthly rental payments range from $353 to $2,870.
In an attempt to address the situation, Guy said, the POSSCL prepared new occupier agreements which some tenants signed. The tenants were informed that from October 1, 2023, the POSSCL would be collecting its rent. “It was made clear to tenants the need to pay the subsidised rent and going forward from October 1, 2023, rents are to be paid consistently. Arrears owing before October 2023 will be treated with, on a one-on-one basis, in the not-too-distant future, as we wish to consider the tenants’ challenges and work with them,” Guy said.
In October the POSSCL noticed a ten per cent increase in rent payments. The following month it jumped to 34 per cent. However, by the end of the year, the payments started to decline. “There were some improvements, but some tenants were adamant not to pay. Despite consultations and engagements, some 139 tenants (57 at New City Mall and 82 at Eastside Plaza) were recorded as being in arrears between October and December 2023.”
In January, Guy said, the POSSCL advised La Caille who also provides legal support for the organisation, to prepare notices. The notices gave the tenants 30 days to clear their arrears. But this deadline was extended to after Carnival.
“We were very lenient with them,” he added.
Sunday Guardian received documents showing that 28 Eastside Plaza tenants owed the Government $509,793.17 from October to December 2023. For the first quarter of this year, these tenants had also not paid their rent amounting to $45,497.10.
The documents showed that one tenant whose monthly rent was $2,780 was in arrears of $109,477.33. Another tenant owed $55,902.40 even though his monthly rent was a mere $1,098. A tenant whose monthly rent was $257.65 had racked up a $13,272 bill. A fourth tenant was owing $41,641.73. Her rent was listed as $712.45 a month.
This led to the POSSCL bolting the doors of 28 tenants at Eastside Plaza and 27 at New City Mall who had faulted in their payments. Asked if there were plans to sell the tenants’ goods to recover the outstanding debt, Guy said this was not on the cards.
He said the board’s position was to find ways to work with the tenants so they can honour their commitment. Guy, who described the situation as “unacceptable”, said these tenants cannot continue to live free out of the State. “And what is unfair is that you are also living off of the rent that other tenants are paying, while you sit back and refuse to pay your rent.”
Guy said the legal work provided by La Caille was “separate and apart from corporate secretarial services as advertised nationally.” He also disclosed that all legal payments made by the tenants will go to La Caille and not into the POSSCL’s coffers. “That money is not coming to us because we are not a legal company.” Guy said La Caille was hired in 2022 by the POSSCL with a dual function and did not see her legal fees as a conflict of interest.
“This is not a conflict of interest because we didn’t secretly say corporate secretary you do this.”
Tenant says business slow
On Thursday, two Eastside Plaza tenants Jennifer Hosten and Lincon Griffith condemned the $1,000 legal fee imposed, stating it was unfair to entrepreneurs trying to survive. “The fee is unfair because we don’t even make that kind of money inside here,” Hosten said during a telephone interview.
Hosten, 74, operates a sewing business at the plaza which she said had little or no foot traffic and sales. Between February and March, Hosten settled a $3,970 bill and paid the $1,000 legal fee for the locks on the door of her shop to be opened.
“Since after the pandemic you hardly see customers. I am not making any money. Sometimes I have to dip in my savings to pay my rent,” Hosten said. Two weeks ago, Griffith said a lock was placed on the door of his barber shop for owing rent. Having sought legal advice on the matter, Griffith said he has no intention of paying his monthly $540 rent and the legal fee.
“Locking people out of their place without going through the court is not constitutionally right.” Griffith believed the POSSCL actions were “illegal” as they caused him to lose his daily earnings.
He said he stopped paying his rent after the POSSCL announced a few months ago that the plaza was earmarked for an upgrade and the tenants would be shifted to another building. “That was a set of robber talk.”
Contacted on Thursday, Dayne Francois who has been managing Eastside Plaza and holding on for Diane Hendrickson, manager of New City Mall, said he supports the people of east Port-of-Spain and the development of their businesses. “I stand in the best interest of the tenants.” Francois steered clear of the legal fees being charged. “I had to preside over the locking down of several booths which was an unfortunate situation.”