Chicco to get N$30m land for N$8m at Oshakati

Urban and rural development minister Erastus Uutoni reportedly approved the sale of land at Oshakati worth an estimated N$30 million for just N$8 million to businessman Erastus ‘Chicco’ Shapumba.

The Oshakati Town Council, in a media statement on Thursday, announced that the land was sold to Mouse Properties Ninety Eight CC, owned by Shapumba.

In June 2016, the council sold the land in question, a well-known erf previously known as Omatala, to Shapumba’s company for N$2,5 million.

The land, which was previously used as an open market and bus terminal, measures 1,7 hectares and is situated along the Oshakati main road.

Former urban and rural development minister Sophia Shaningwa had reportedly blocked the council’s decision to sell land to Shapumba’s company for N$2,5 million.

The allocation of land dragged on when the matter was brought before courts, however, Shapumba won the case against the council.

“The minister of urban and rural development, in terms of the provisions of section 30 (1) (t) of the Local Authorities, 1992 (Act No.23 of 1992) as amended, granted approval in April 2024 to the Oshakati Town Council to sell/dispose of Erf 1342, business zoned in Oshakati Extension 4, measuring 16 177 square metres, at a total purchasing price of N$7 million excluding Value Added Tax (VAT) and N$8 million inclusive of VAT. This amount excludes the deed of sale signaling the conclusion of this protected land transaction,” said the town council.

The town council further noted that the deed of sale was already signed with Mouse Properties Ninety Eight, signaling the conclusion of the land transaction.

According to the council, the sale of the property is subject to the set conditions that Mouse Properties Ninety Eight should present the building plan of the proposed development before approval by the building plan committee.

“That the building should be a landmark building befitting the standard and value of the central business district of the town,” the council noted.

The council also wants it to be a two-storey building.

The council said the building to be constructed will have a positive development impact and will undoubtedly add great value to the local economic development of the town.

“Importantly, it will generate massive employment opportunities, both during the construction and operation of the property. In addition, the revenue of the council will increase in terms of rates and taxes and other municipal services which will be levied on this property,” noted the town council.

Shapumba refused to comment on the matter when The Namibian contacted him for comment yesterday, while Oshakati chief executive officer Timoteus Namwandi said he would comment on the matter today.

Uutoni did not answer his cellphone yesterday when The Namibian attempted to get comment from him.

EIGHT YEARS AGO

Former Oshakati mayor Onesmus Shilunga in 2020 told The Namibian before the land was sold to Mouse Properties Ninety Eight, the council received business proposals from 11 entities, some of which he said offered between N$150 million and N$1 billion.

Shapumba was one of the applicants and his proposal was ranked fifth out of the 11.

Those who offered to buy the property for more than the actual evaluation price were turned down, making Shapumba the council’s favourite, he said.

After the land was sold to Shapumba’s company in 2016, the council appointed a property valuator to determine the market value of the land, he added.

According to the valuation report seen by The Namibian, the property was valued at N$30,4 million by 1 July 2016 and has great potential as it is located close to the road network.

“It is a corner business plot that will fetch a good price if it is exposed to buyers in the open market,” the valuator noted in the report.

The valuator also said because the property is close to the road, most people are ready to pay higher rent, making it possible for the council to rake in more income.

In August and September 2016, four property valuers engaged by the council provided valuations of the plot to the council.

The lowest valuation was N$16,11 million, while the highest was N$45,5 million.