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Confusion, contradictions: Millions spent on unused ministry office

Ministry of Sport, Youth, and National Service executive director, Erastus Haitengela

The Ministry of Sport, Youth, and National Service executive director, Erastus Haitengela, says the government only paid N$2.1 million to rent an office building in Windhoek without using it.

Haitengela reacted to a story published yesterday by The Namibian which reported that the government signed a contract to pay N$1.1 million per month to rent a city-centre building owned by businessman Erastus ‘Chicco’ Shapumba.

Last year, Haitengela said the government was paying N$450 000 a month.

Now, he is claiming the government only paid N$2.1 million in January 2025. Haitengela yesterday denied he said they would be paying N$450 000 last year.

“In January 2025, the parties to the agreement confirmed that the building had reached the ‘basic completion’ stage. As a result, on 7 January, the Ministry of Works and Transport, acting on behalf of our ministry, remitted the security deposit and the first rental payment, amounting to N$2 128 500,” Haitengela said in a statement yesterday.

He said this is the only payment made to date between the government and the building owners.

According to an agreement signed in December 2023, the government was required to pay N$1.1 million each month to City Place and Property Management Pty, a company owned by Shapumba.

The agreement, which came into effect in April 2024, was signed by Shapumba and works and transport executive director Esther Kaapanda on 13 and 14 December 2023.

However, 10 months after the agreement was signed, the youth ministry never moved into the building.

Haitengela said he is not the one who signed the deal, and the building issue started before he joined the ministry.

MOVING IN MARCH

Haitengela said the N$2.1 million payment officially formalised the lease agreement, enabling the youth ministry to proceed with relocation planning in close coordination with technical partners at the Ministry of Works and Transport.

“Since the building is newly constructed and consists of three open-plan floors, the process of partitioning and installing necessary customisations commenced in January 2025. Notably, the cost, technical drawings and designs for these modifications were finalised in August 2024, pending the building’s completion,” he said.

He said these installations are expected to be completed by the end of February 2025, with relocation scheduled for 1 March.

“It is important to clarify that the Ministry of Works and Transport is responsible for procuring office spaces and managing lease agreements for government ministries, in consultation with the respective user ministries,” he said.

Currently, the youth ministry operates from two locations: the Ministry of Higher Education, Technology and Innovation building at Government Office Park and the Namibia Industrial Development Agency (Nida) building.

However, the higher education ministry has formally requested that the youth ministry vacate their premises to accommodate their own staff.

Due to the urgent need for consolidated office space, Haitengela said his ministry agreed to relocate to Erf 126, Independence Avenue, to enhance operational efficiency and reduce the high costs of renting multiple office spaces.

“At the time of signing, the building was still under construction and both parties mutually agreed to postpone the contract’s effective date. As a result, no rental payments were made between December 2023 and December 2024,” he said.

Haitengela said the outstanding partitioning on certain floors delayed the relocation.

“While the ministry has not yet physically occupied the building, it has assumed custodianship of the premises during the transition period,” he said.

He added “to facilitate the relocation, under the guidance of the Ministry of Works and Transport, our ministry has initiated the procurement process for civil, security, electrical, and information technology contractors to complete the necessary installations and customisations.”

CONFUSION

Haitengela’s statement, however, contradicts other available information. In May 2024, Haitengela was quoted saying they were paying N$450 000 per month, which totals N$5.4 million a year.

“The rental amount will be more than double what we are currently paying Nida. The difference is that we are not all housed under Nida now, but where we are going, we will be,” he said last year.

Shapumba yesterday told The Namibian he never received N$11 million.

“I never received N$11 million. Maybe someone opened an account for that money. You must research well and ask who said they paid us to determine which account they paid in. You must correct that,” he said.

Minister of sport, youth and national service Agnes Tjongarero says she only “heard” about it.

“I heard that we are paying money but we have not moved in. I think it was also in the newspapers. I heard about it but I don’t know if it’s the truth, really. So does this mean we are paying rent for two offices, for the building we are currently in and the unoccupied one?” she asks.

Shapumba has a history of getting controversial deals from state-owned enterprises.

The Namibian reported in 2023 that the state-owned Agro-Marketing and Trade Agency (Amta) paid N$57 million to Shapumba in two land deals.

One was for Amta to lease a Windhoek, northern industrial property for N$45.9 million while another payment of around N$10.5 million was for leasing a plot at Oshikango.

An Amta investigation found that the parastatal did not conduct due diligence on the Windhoek property and that the Oshikango land had no description or a title deed.

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