Paragon’s land purchase goes ahead

BLACK empowerment company Paragon Investments will be allowed to pursue its plans to buy a piece of prime municipal land in Windhoek.

The City has denied accusations made in reports in the New Era daily over the last month that it had flouted procedures by allowing Paragon Investments to make an offer for Erf 7413 without it being put on auction or on tender. The deal will be allowed to proceed, unless Council decides otherwise.The property is located on the corner of Reverend Michael Scott and Garten Streets.City CEO Niilo Taapopi told the media last week that the municipality had acted well within municipal procedure to permit the sale of the property by private treaty.In terms of the Local Authorities Act, a private treaty sale must have ministerial approval.Taapopi said that according to a Council resolution of 1994, the municipality is allowed to grant permission to an entity to acquire land by private treaty for the purpose of a “special project”.The municipality would not say what “special project” Paragon intends to undertake on the property.Lazarus Jacobs, who heads Paragon Investments along with partner Desmond Amunyela, would also not reveal their development plans when approached by The Namibian.Despite the negative publicity, he said it had been shown that there had been no “oversight” in awarding his company the right to purchase the land, and that they would continue pursuing the process to claim it.Taapopi said the decision to allow Paragon to proceed with plans to buy the property was supported by a Council resolution taken in 1992, which recognised the roles “all groups can perform in the social, economic and cultural development of the city” and to “ensure equal development potential for all”.With reference to the application by Paragon to buy the plot, Taapopi said the motivation for purchase by private treaty was supported because it was in line with the City’s objective of local economic development by “accommodating the aspirations of all its residents by allowing a special initiative from previously disadvantaged persons”.Taapopi said the municipality had no written record of any other party expressing interest in purchasing the same property.In April, Council approved that the erf be sold by private treaty to Paragon pending cadastral [issues related to the preparation and servicing of the plot] changes and ministerial approval.”This decision was therefore handled within the normal parameters of the law, just like other similar transaction concluded in the past, in the same legal manner,” said Taapopi.”It should be emphasised that the sale of this property to Paragon is subject to ministerial approval, which in turn can only be submitted upon the completion of cadastral procedures which might take some months.”Taapopi further denied that the property was being sold for half its true value.According to the CEO, the property was valued at an upset price of N$1,08 million.Jacobs confirmed to The Namibian that no money had yet exchanged hands, and this would only happen when final approval was obtained by Minister for the deal to be sealed.Jacobs said his company had agreed on the upset price as the purchase price.Municipal insiders had claimed to the New Era that had the property been put out to tender or auction, it could have fetched a higher selling price.The CEO also shot down claims that the erf was needed for future accommodation because of its proximity to the municipal headquarters.Taapopi maintained that the erf had never been reserved for this purpose, and said the City owned other improved and unimproved property that could address this need.The deal will be allowed to proceed, unless Council decides otherwise.The property is located on the corner of Reverend Michael Scott and Garten Streets.City CEO Niilo Taapopi told the media last week that the municipality had acted well within municipal procedure to permit the sale of the property by private treaty.In terms of the Local Authorities Act, a private treaty sale must have ministerial approval.Taapopi said that according to a Council resolution of 1994, the municipality is allowed to grant permission to an entity to acquire land by private treaty for the purpose of a “special project”.The municipality would not say what “special project” Paragon intends to undertake on the property.Lazarus Jacobs, who heads Paragon Investments along with partner Desmond Amunyela, would also not reveal their development plans when approached by The Namibian.Despite the negative publicity, he said it had been shown that there had been no “oversight” in awarding his company the right to purchase the land, and that they would continue pursuing the process to claim it.Taapopi said the decision to allow Paragon to proceed with plans to buy the property was supported by a Council resolution taken in 1992, which recognised the roles “all groups can perform in the social, economic and cultural development of the city” and to “ensure equal development potential for all”.With reference to the application by Paragon to buy the plot, Taapopi said the motivation for purchase by private treaty was supported because it was in line with the City’s objective of local economic development by “accommodating the aspirations of all its residents by allowing a special initiative from previously disadvantaged persons”.Taapopi said the municipality had no written record of any other party expressing interest in purchasing the same property.In April, Council approved that the erf be sold by private treaty to Paragon pending cadastral [issues related to the preparation and servicing of the plot] changes and ministerial approval.”This decision was therefore handled within the normal parameters of the law, just like other similar transaction concluded in the past, in the same legal manner,” said Taapopi.”It should be emphasised that the sale of this property to Paragon is subject to ministerial approval, which in turn can only be submitted upon the completion of cadastral procedures which might take some months.”Taapopi further denied that the property was being sold for half its true value.According to the CEO, the property was valued at an upset price of N$1,08 million.Jacobs confirmed to The Namibian that no money had yet exchanged hands, and this would only happen when final approval was obtained by Minister for the deal to be sealed.Jacobs said his company had agreed on the upset price as the purchase price.Municipal insiders had claimed to the New Era that had the property been put out to tender or auction, it could have fetched a higher selling price.The CEO also shot down claims that the erf was needed for future accommodation because of its proximity to the municipal headquarters.Taapopi maintained that the erf had never been reserved for this purpose, and said the City owned other improved and unimproved property that could address this need.