Defence splurges N$69m on farms

Revelations have come to the fore detailing how the Ministry of Defence splashed almost N$70 million on acquiring two farms last year.

The defence ministry has been hogging the headlines in recent months after it emerged that it had acquired Oropoko Game Farm to the tune of N$45 million to train troops.

Oropoko, which is situated near Okahandja, was bought from German investor Kurt Steinhausen. It measures 4 974 hectares.

New information reveals the ministry in fact spent an additional N$24 million to purchase Farm Otjisemba in the Otjozondjupa Region, which measures 5 138 hectares.

The government entered into a sale agreement for the purchase of Farm Otjisemba on 15 March 2017.

According to documents seen by Namibian Sun, it was then agreed that a deposit of N$10 million be paid towards the transaction on the same day the deal was signed.

Finance minister Calle Schlettwein this week told Namibian Sun's sister newspaper Republikein that the deal was seemingly concluded while the treasury was preoccupied with the settlement of outstanding invoices from the 2016/17 financial year.

“The payment slipped through in the time when we were making special provision for the settlement of outstanding invoices,” Schlettwein was quoted as saying.

According to Schlettwein, the defence ministry did not follow the correct procedures for the purchase of the farm.

Defence spokesperson Major Petrus Shilumbu said his ministry would shed more light on the purchase of the farm in due course.

“We will pronounce ourselves at a later stage not now. Once the permanent secretary pronounces himself will we let you know,” Shilumbu said.

Works permanent secretary Willem Goeiemann, who represented the government when the deal was signed, also refused to comment.





He referred all queries to the defence ministry.

“I do not want to comment on this, you must talk to defence,” Goeiemann said when approached.

Last month, President Hage Geingob expressed his dismay at the defence ministry spending N$45 million to acquire the luxury Oropoko farm.

A few days later defence minister Penda Ya Ndakalo defended the purchase in the National Assembly, saying the president was not consulted owing to his busy schedule. The minister said Geingob's busy schedule prevented him from discussing the matter with him.

He added that negotiations began in April 2016 already, with the sale finalised in October last year.

Ya Ndakolo did not make any mention of Farm Otjisemba when he defended the Oropoko deal.

According to Ya Ndakolo, an initial offer of N$103 million was received for Oropoko. He added on 6 July 2016 the defence ministry requested the works ministry to evaluate the farm. It was valued at N$43.76 million.

The cost of the two options was then compared, said Ya Ndakolo. Following negotiations between the ministry and the owner of Oropoko, a selling price of N$45 million was agreed upon.

The farm purchase has been widely criticised and details of its acquisition came at a time when the defence ministry asked thousands of troops staying at the seven bases around the country home because of budgetary constraints.

In this year's budget, the defence ministry was allocated a staggering N$6 billion.

OGONE TLHAGE