Von Bach company wants N$465m from Govt

A company leasing part of the Von Bach Dam area near Okahandja from Namibia Wildlife Resorts wants the High Court to order the government to pay N$465 million to it, based on its claim that land used by two waterski clubs at the dam overlaps the area leased by the company.

The company, Tungeni Africa Investments, has now given notice that it plans to ask the Windhoek High Court to grant a default judgement in an amount of N$465 million against the minister of environment, forestry and tourism.

Tungeni took this step on Thursday last week, after the minister failed to oppose a claim that the company filed in the High Court near the end of October last year.

In its original claim, Tungeni is asking the court to order that concession rights agreed to by the government and two waterski clubs at Von Bach Dam may not overlap or encroach on the area at the dam that the company is leasing from the state-owned Namibia Wildlife Resorts (NWR).

If the court does not make that order, it should declare that Tungeni Africa Investments is a rights holder for the purposes of an agreement concluded between the government and two ski clubs – the Namibia Water Ski Club and the Von Bach Water Ski Club – in April last year, or order the government and the two clubs to pay N$201,8 million in compensation to the company, Tungeni is also claiming.

However, the company has now more than doubled the amount it is trying to claim as compensation for financial losses it alleges it has suffered as a result of the two ski clubs’ use of a part of the area at Von Bach Dam.

In an affidavit filed at the High Court on Thursday last week, Tungeni’s managing director, Iyaloo ya Nangolo, says according to a report by an actuary asked to assess the company’s loss of earnings, Tungeni has suffered a financial loss of N$338,8 million at Von Bach Dam in respect of development profits that were not realised.

With Namibia’s inflation rate also taken into account, the current value of Tungeni’s financial loss is about N$465,3 million, according to the actuary’s report, ya Nangolo says.

Ya Nangolo and NWR’s then managing director, Tobie Aupindi, in July 2008 signed an agreement in terms of which NWR leased an area of 470 hectares at Von Bach Dam to Tungeni for a period of 50 years.

In the lease agreement, it is stated that it is expected of Tungeni to invest at least N$450 million in tourism facilities at the dam.
According to Tungeni, the area the ski clubs are allowed to use at the dam in terms of their agreement with the government reduces the area available to the company for use by 30,5 hectares.

In the actuary’s report, it is recorded that Tungeni planned to develop the land leased from NWR by building 300 houses, which were to be sold at prices ranging from N$1,6 to N$7,5 million.

The actuary who prepared a report for Tungeni based his assessment of the company’s financial loss on an assumption that the 300 planned residential units at Von Bach were to be built from 2015 to the end of 2017, and that all of the units would have been sold within six months after being built.

The project would have realised a total profit of about N$338,8 million for Tungeni, according to the actuary’s projections.

The actuary also recorded in his report that according to Tungeni, the first 150 units would have been developed in the area in which the company says the ski clubs are encroaching on the land leased by it, while the last 150 units would have been situated in adjacent areas.

Tungeni’s lawyer, Francois Bangamwabo, has given notice that the company plans to apply for a default judgement to be granted against the minister of environment, forestry and tourism on Thursday this week.

In the meantime, a lawyer from the government attorney’s office on Friday last week filed a belated notice of opposition by the minister at the High Court.