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Minister approves N$8m Omatala sale

2024-05-15  Victoria Immanuel

Minister approves N$8m Omatala sale

The urban ministry has given the Oshakati Town Council the green light to sell the old open market, known as Omatala, to Mouse Properties Ninety-Eight CC for N$8.1 million.

Mouse Properties CC is solely owned by northern property mogul Erastus ‘Chicco’ Shapumba.

In a dossier signed by Urban and Rural Development executive director Nghidinua Daniel, seen by New Era, it says: “The honourable minister has, in terms of Section 30 (1)(t) of the Local Authorities Act, 1992, as amended, approved Oshakati Town Council to sell Erf 1342, Oshakati Extension 4, measuring 16 177 m, to Mouse Properties Ninety-Eight CC at a purchase price of N$7 million excluding VAT and N$8.1 million including VAT, but excluding administration costs and transfer costs, subject to the conditions of Council Resolution No.SCM01/21/07/2023/03rd/SCM2023.”

In 2016, the council agreed to sell erf 1342, previously known as Omatala, to Mouse Properties Ninety-Eight for N$3.5 million.

In 2021, urban minister Erastus Uutoni rejected the sale of the old open market.

The latest development follows the 11 May 2022  Supreme Court ruling, which directed Uutoni to decide whether to approve the proposed sale.

Measuring 1.7 hectares, the land in question is situated along the Oshakati main road and was previously used as an open market and bus terminal.

It is valued at between N$16 million and N$45 million.

According to Oshakati town mayor Leonard Hango, plans to sell the old open market are in the pipeline.

“I still do not know how much the council is selling the plot for. We are waiting for the directive from the Minister of Urban and Rural Development, Erastus Uutoni,’’ said Hango.

When contacted, Oshakati CEO Timoteus Namwandi was in complete darkness regarding Uutoni’s approval.

“Such information has not reached me yet, so I cannot comment,” was all Namwandi could say.

Attempts to obtain a comment from Shapumba yesterday proved futile.

Shapumba indicated that he was on the farm, that it was very noisy, and that he could not comment.

Uutoni yesterday confirmed having written the letter and forwarded it to Oshakati management. He said they have not confirmed receipt and therefore he is still waiting for a response from the town council.

The minister also indicated that the communication is not a final deal as the selling decision is yet to be made after the council responds to his letter.

Back in 2016, the Oshakati Town Council agreed to a giveaway price of N$3.5 million for the plot where the open market was previously situated.

Mouse Properties Ninety-Eight CC initially offered to buy the land for N$2.5 million, which was eventually increased to N$3.5 million.

This deal was, however, met with a string of legal objections, which lasted for about seven years. 

At the time, administering the court’s ruling in a signed and stamped letter dated February 7, 2023, Uutoni said the sale of Erf 1342, which is situated at Extension 4, measuring 1.7 hectares, would not be in the public interest. 

“Firstly, there were four valuations submitted by independent valuers on request by the Oshakati Town Council. The highest valuation of Erf 1342 was N$45.5 million, and the lowest was N$16.1 million. My preliminary view is that these valuations were not considered by the Oshakati Town Council when it seemingly agreed to the proposed price of N$2.5 million, later changed to N$3.5 million,” read the letter.

 The minister at the time reasoned that the price of N$3.5 million is only about 21.7% of the lowest valuation done by Messrs, Northern Properties Valuers.


2024-05-15  Victoria Immanuel

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