Africa-Press – Namibia. THE management committee of the Tsumeb municipality has resolved to sell a plot estimated to cost N$4 million for N$1million.
Council documents show that the council resolved in January this year that the land, which is situated at Nomtsoub settlement, be sold for N$1 million to Guinea Fowl Investments Forty-Nine.
This decision was taken at a management committee meeting that consists of Swapo councillors only.
Tsumeb mayor Mathew Hangula told The Namibian yesterday that there is nothing wrong with selling the land valued at N$4 million for N$1 million “as long as there is value that is beneficial to the council and also to the town. Unless there is any section in the Local Authorities Act that prohibits council to sell land at whatever price it wishes.”
Former Motor Vehicle Accident Fund of Namibia Fund chief executive officer Jerry Muadinohamba and a certain J Hatuikulipi are the directors of Guinea Fowl Investments Forty-Nine.
A source within the municipality said Muadinohamba and his partner want to build a shopping complex on the plot, erf 3363.
The Namibian has learnt that Guinea Fowl Investments Forty-Nine initially applied for the land in 2015, which was worth N$4 million when it was evaluated in 2018.
However, in April 2019, the council resolved to sell it for N$1 million and they were given 90 days to pay for the land in cash or provide a bank guarantee to the Tsumeb municipality.
This was not done, said councillor Absalom Uukule, one of the councillors of the Tsumeb municipality.
Uukule, who represents Independent Patriots for Change, said Guinea Fowl Investments Forty-Nine re-applied for the land towards the end of last year after it failed to pay for the land two years ago.
The councillor believes that it is not correct to sell the land to Guinea Fowl Investments Forty-Nine for N$1 million in 2023, because that was the price of the land two years ago.
Uukule wrote a letter to urban and rural development minister Erastus Uutoni yesterday requesting the revaluation of the land.
“This attitude of some councillors cannot be tolerated. I am very much disappointed with the chief executive officer, as the accounting officer of the municipality who was supposed to guide and correct us, but she was siding with those who want us to collapse the council,’ he said.
Muadinohamba complained to the municipality in a letter dated July 2019 that the process of land allocation had dragged on.
He claimed the anchor tenant, who had partnered with his company in 2015 when they initially applied for the land, was being frustrated by the length of the land application process and was not as keen as before in investing in the property.
“We bring to your attention that our group has already spent a large amount of money on the project. The direct costs incurred to date for design, the site visits, the administration fees and the project management, total in excess of N$1,6 million,” Muadinohamba wrote in his letter.
He added, “It is really unfortunate that the process has taken so long, compromising the additional N$23 million we had allocated for investment. We would also have been able to use the excess cash to repay the bank loan taken.”
Tsumeb chief executive officer Victoria Kapenda refused to comment on the matter yesterday.
The chairperson of the management committee Frans Kamati referred The Namibian to the spokesperson of the town.
Meanwhile, Muadinohamba told The Namibian yesterday that he was not at liberty to comment on the matter, saying the municipality has all the information.
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