Govt lawyers in bid to kill N$105m Sossusvlei deal

The Namibian government is preparing to approach the High Court to have a lucrative 25-year concession agreement for one of the country's most iconic tourist destinations torn up entirely, a letter by the attorney general (AG) reveals.

The letter, dated 30 April, has informed Grow Namibia CC’s managing director Heiko Dörgeloh that the company's concession over the Sossusvlei shuttle service and Farm Arbeid Arbelt campsite in the Namib Naukluft National Park is about to face a legal battle.

"Our client, Minister of Environment, Forestry and Tourism, Indileni Daniel, intends to approach the High Court to have the decision to enter into the above-captioned agreement reviewed and set aside, and to have the said agreement declared null and void," the letter states.

Daniel and her government lawyers argue that the deal should never have existed in the first place.

Grow Namibia CC, trading as About Africa Co, was founded by Dörgeloh. The company operates tourism and hospitality services and was awarded the Sossusvlei concession following a public tender process that was advertised in November 2023.

The concession granted About Africa operational control of the shuttle service from the 2WD parking area to Deadvlei, as well as the Farm Arbeid Arbelt campsite – two of the most commercially valuable tourism assets in the Namib Naukluft National Park.

Awarded in January 2024 at a bid of N$105 million, the agreement was set to run for 25 years. The company was expected to generate more than N$250 million over that period.

From the moment the award was announced, it drew controversy. State-owned company Namibia Wildlife Resorts (NWR) was reported to have stood to lose as much as N$175 million as a direct consequence of the concession being handed to a private operator, with NWR management claiming they were not even formally notified of the decision and only learned of it through social media.

“Unfair” process

At the core of government's anticipated legal challenge is a striking allegation: that the agreement Grow Namibia CC signed bears little resemblance to what was advertised to the public when the tender was first put out.

The AG's letter identifies three specific rights granted to Grow Namibia CC that they argue never appeared in the original request for proposals.

The most contentious one is the exclusive control over access to Deadvlei.

The original tender stated "the non-exclusive right to conduct a shuttle service from the Sossusvlei 2WD parking area to Deadvlei".

Yet, according to the AG, the signed agreement goes beyond that, barring self-driving tourists from accessing Deadvlei independently and requiring all access to pass through the concessionaire.

"There was no indication that access to Deadvlei shall only be through the concessionaire, and that no self-driving tourist is allowed," the AG's letter states.

The AG also argues that the second undisclosed right is the exclusive authority to construct and operate a viewing platform or walkway, including a refreshment kiosk, at Deadvlei itself, reducing direct physical access to the landmark.

The third is the broad retail trading rights across the concession area, covering the sale of craft, meals, food, beverages and firewood.

"Such a right was not advertised to the general public when the concession was advertised," the letter reads.

The AG characterises the overall procurement process as having been "non-transparent, anti-competitive, and generally unfair".

Law was not followed

The AG states that, beyond the procurement irregularities, government raises a legal failure in terms of Section 17(9) of the Nature Conservation Ordinance of 1975, which requires the minister to appoint a committee of ministry staff and independent experts to oversee the identification, awarding and monitoring of all concessions.

That committee, the AG's letter reveals, was cut out of the process entirely.

"The relevant committee was not involved in the award of the concession to Grow Namibia CC and did not review nor did it recommend the terms of the concession agreement before it was signed," the letter states.

According to the AG, government’s position on the concession agreement was invalid from the start, as though it was never entered into at all.

Freeze on exclusive rights

The AG warns that Daniel will not wait for the court process to play out before taking action.

The letter demands that Grow Namibia CC immediately stop enforcing any exclusive rights under the agreement while the review is pending.

"Access to the Deadvlei area must remain as is and shall not be solely through Grow Namibia CC," the letter instructs. "Grow Namibia CC must not interfere with the rights of other operators and tourists who visit the concession area."

Grow Namibia CC was given until 5 May to submit written representations to the minister. That deadline passed on Tuesday.

The AG's letter states the self-review application would be filed with the High Court by 8 May.

The legal escalation is the result of two years of mounting anger over the concession.

When About Africa began enforcing access restrictions on 1 May, preventing self-drive tourists from proceeding beyond the 2WD parking area, the tourism industry erupted.

The Federation of Namibian Tourism Associations (Fenata) warned that operators were "up in arms" over the inconsistency of government's communication.

Major operators including Sense of Africa, Wild Wind Safaris, Blue Crane Safaris and Gondwana Collection have all raised concerns that the concession changed the terms of access to a national park that belongs to all Namibians.

This week, Prime Minister Elijah Ngurare publicly rejected the access restrictions, saying that “Sossusvlei must be open firstly for all Namibians and secondly, by international visitors and tourists".

Dörgeloh hits back

In a telephone interview with Namibian Sun, Dörgeloh rejected government's allegations outright, saying that he has evidence contradicting every claim made in the AG's letter.

"There is no tangible proof to what they are saying in their letter," he claimed.

"But there is tangible proof of all procedures within the ministry as well as externally on our side that states that full protocol was followed," Dörgeloh added.

On the specific allegation that the legally required oversight committee was bypassed, Dörgeloh said that a committee was indeed required, and insisted it had been involved.

"Yes, they are correct to say that there was supposed to be a committee, and I have evidence of the committee that passed it. That committee guided the previous minister, Pohamba Shifeta, through the entire process," he said.

Dörgeloh was dismissive of the AG's deadline for written representations, saying the company would respond in its own time.

"Whether we have responded to the AG's letter or not is immaterial, we will address it. I have had hundreds of meetings with the ministry which no one is aware of," he said.

"What I do not understand is, why are they doing this? What is their real story here?"