Govt’s N$135m Swakop Hotel takeover
Jooste would not say whether the funding for the planned purchase had been secured from Namibia Post and Telecommunications Holdings.
11 May 2021 | Local News
Government has allocated N$135 million for the purchase of the Swakopmund Hotel, says public enterprises minister Leon Jooste.
TransNamib, a 50% shareholder in the hotel with Stocks Leisure, was forced out of the partnership after the High Court ruled that it had not provided its share of financial support for the hotel.
The hotel has liabilities of N$111 million, while its assets total N$65 million.
Jooste said the Cabinet Committee on Treasury is assessing the possibility of buying the hotel.
“We have N$135 million allocated to the ministry of public enterprises in the budget that is potentially available for a transaction. The item is currently under the Cabinet Committee on Treasury where we are evaluating various options to ensure the best outcome,” he said.
Jooste would not say whether the funding for the planned purchase had been secured from Namibia Post and Telecommunications Holdings (NPTH). NPTH had been approached by government to fund the purchase of the hotel, a proposition it rejected.
Not in best interest
Official correspondence between Jooste and TransNamib board chair Sigrid Tjijorokisa shows the minister went as far as lobbying Cabinet for support to block any appeal plans.
This despite the board being of the view that not appealing was “not in the best interest of the company”, Namibian Sun reported in March.
Stocks and Stocks had accused TransNamib of failing to honour its financial obligations towards the business.
It further claimed that it had not received dividends since the establishment of the hotel 26 years ago.
Meanwhile, the National Union of Namibian Workers (NUNW) has also shown interest in purchasing the hotel. Secretary-general Job Muniaro told Namibian Sun recently that negotiations were ongoing.