Hauwanga fails to deliver 506 houses at Oshakati after a year

BUSINESSMAN Ben Hauwanga, whose company BH Properties was allocated land to construct 506 houses at Oshakati’s Ompumbu location, has failed to deliver a single house a year later.

Hauwanga told The Namibian on Monday the construction of the housing project will start this week.

He said the delay is due to one of the subcontractors not arriving on time. The land was handed over to BH Properties in May last year.
“On Tuesday we will be on site clearing the area and on Wednesday will start with the construction. Please give us time, we will start … We are just waiting for some people who are arriving on Tuesday or Wednesday,” he said.

However, sources close to the matter say the delay appears to be a cash flow problem on the businessman’s side.

“There is nothing wrong on Oshakati Town Council’s side. He was given deadlines but he did not honour them. The residents of Oshakati want the project to commence, but nothing is happening,” a source told The Namibian.

A letter from BH Properties to the Oshakati Town Council dated 27 April confirmed the unavailability of funds to start with the construction of the project.

“We have experienced unforeseen delays in our joint project due to the current downturn in the economy.

“We have, however, recently made significant progress in [sic] the necessary funds to proceed with the construction by the end of May, with renowned Capital Growth Asset Management,” BH Properties wrote to the Oshakati Town Council.

In the letter, BH also promised to do “everything possible to minimise the inconvenience caused by the delay” and undertook “to alter our project scope in order to make up lost ground on the targets that have been set”.

Oshakati mayor Leonard Hango confirmed to The Namibian yesterday that not a single house had been built since the land was allocated to Hauwanga.

EMPTY PROMISES

Towards the end of May last year, the Oshakati Town Council held a groundbreaking ceremony to hand over the site to Hauwanga. The event was attended by, among others urban and rural development minister Erastus Uutoni.

Hauwanga at the time said the three-year housing development was valued at N$305 million.

At the time, he said the project would provide employment to about 400 to 600 Namibians.

He also said he would subcontract 20 contractors, who would be required to each complete a house every month.

“It means in 15 days, we will have 20 houses already from the floor level. We will give you what you want,” Hauwanga promised last year.