1004 estate management denies ‘squandering N5bn service charges’

The board of trustees and executive committee of 1004 estate homeowners and residents association (HORA) have denied allegations of mismanagement levelled against them in a video making the rounds on social media.

Published on September 23, the maker of the video who claimed to be a resident in the estate, showed degrading conditions such as open sewers, rusted metal locks, open gutters and leakages.

She also accused the management of squandering over N5 billion in service charges and electricity bills over the last five years.

However, in a statement, Femi Gbenle, legal officer, 1004 HORA, described the allegations as “false”.

“We wish to inform the public that most of the claims in that video are no more than a mix of falsehood layered with half-truths,” he said.

“Most of the content of their video does not reflect the current state of the estate. Our lawyers have been briefed to act on the clearly libellous attack on members of the BOT, EXCO and other homeowners who have been defamed in that video and other false and negative publications.

“The merchants of blackmail, falsehood as well as the platforms which they use, will face the full weight of the law.”

The association also stated that “there is no ₦5bn or any other falsely quoted sum in 1004 estates that have been mismanaged or misappropriated.”

“The key purveyors of these false claims are well known in the estate for several of infractions that include non-payment of rent, service charge and theft of electricity. Having been sanctioned for these infractions (consistent with the estate bye-laws), and curbed by our recent press conference and the attendant public outcry, they have resorted to outright lies and half-truths via social media and negative press to divert attention from their illegal activities,” Gbenle said.

“Members of the BOT, EXCO, as well as the various committees, are professionals who volunteer to serve the estate pro bono and derive no pecuniary benefit from their office; anyone with a contrary claim should not stop at making cheap mobile videos but publish their evidence.”

On the issue of electricity supply, HORA said: “A forensic audit of our power account showed that over 40% of residents in the estate were involved in power theft.

“This organised power theft was so prevalent that it brought the power infrastructure to the brink of collapse, as receivables could no longer sustain power delivery to dues-paying residents. At a point the deficit from power theft was over ₦185 million and rising.”

Commenting on the structure of the buildings, the HORA said: “We are however not oblivious of the façade of the buildings and the need to improve on this.”

“It is important to note that when the apartments were sold, it was mandatory for each buyer/homeowner to pay ₦300,000.00 as asset replacement fund to be pooled for capital development and refurbishment of the estate,” the statement read.

“The funds totalled about ₦322 million at the time. Unfortunately, the then facility managers, Messers 1004 estate Limited, a company owned by Samuel Ukpong, with whom these funds were domiciled, failed to release the funds when the management of the estate was taken over by 1004 HORA.

“We are currently in court with this company to release the funds with accrued interest believed to now be in the region of ₦600million. In February 2020, an estate refurbishment committee was set up to coordinate the execution of needed civil, mechanical, and electrical works to improve the look and value of the estate.

“A firm of structural engineers was engaged to carry out an integrity audit of the buildings and their expert assessment reassured of the structural integrity of the buildings. They also affirmed that there is no impending danger of collapse of the structures.”