PDM puts Sardarov deal before court
PDM puts Sardarov deal before court

PDM puts Sardarov deal before court

Yanna Smith
The scene may be set for explosive testimony in the Windhoek High Court.

On 15 February, if no intention to defend is filed, the Popular Democratic Movement (PDM) will ask the High Court to halt all planned developments on the four farms leased to Russian oligarch Rashid Sardarov and his company Comsar Properties SA, and secondly, to set aside the 99-year lease agreement signed between Sardarov and the Namibian government and evict him from the land.

In papers filed at the court, the PDM is bringing the action against nine respondents: the land reform minister, Comsar, the finance minister, the prime minister, the president, attorney-general, the registrar of deeds, the chairperson of the central procurement board and the government.

PDM president McHenry Venaani says in his founding affidavit that it is “in the public interest and of direct concern to political parties participating in parliament that an official such as the minister of land reform acts in accordance with constitutional and legal prescripts.”





The farms Rianhof (5 027.8 hectares), Kameelboom (5 917.3 ha), Smaldeel (457.7 ha) and Wolffsgrund (5 982.1 ha), all in the Khomas Region, are at the heart of the application, Venaani said.

“The farms are adjacent to each other and measure 17 385.1 ha and were owned by Rainhof Farming Company before they were transferred to government.”

During October 2018, Venaani learned of the lease agreement signed between the land reform minister, Utoni Nujoma, and Sardarov.

“The news came as a shock to me … more so in the wake of the second national land conference held in September 2018. The issue of land has been topical within the public domain … and the people of Namibia are aggrieved by the slow pace of resettlement and allocation of land,” Venaani said.

He explained at length Nujoma's speech in parliament explaining the signed lease agreement, which was sent to cabinet for approval and was subsequently approved, “because of the massive development and economic benefits and various employment opportunities”.

In terms of the agreement, Sardarov is to pay annual “rent” to the government equivalent to the land tax paid by all commercial farmers.

In his affidavit, Venaani alleges that a “scheme was developed” to make the leasing of the farms to Comsar possible.

“Nujoma and Comsar orally agreed, unlawfully, for Nujoma to effect the acquisition of the farms from the previous owners, subject thereto that Comsar shall pay the previous owners the purchase price and any such compensation due to them. In compensation for the acquisition of the farms by government, Nujoma gave consent to lease the farms to Comsar for a period of 99 years, which is ownership.”

Venaani told the court that this agreement was beyond the scope of Nujoma's powers and constituted “a deliberate circumvention of the law”.

Nujoma “had no authority to lease the farms” he said, adding that “the leasehold period of 99 years is reserved solely for previously disadvantaged Namibians” in terms of the Agricultural Land Act. He said Nujoma was not entitled to lease land for 99 years to a foreigner. “The lease is invalid,” he charged. Regarding Comsar's donation of N$24 million to the government, Venaani said the money was apparently to fund football and buy farms for the purposes of resettlement.

“In this regard, the prime minister gave approval in terms of the Finance Act for the donation … we have not seen any indication that this money was paid into the treasury.” Venaani said they had requested a copy of the lease agreement from the deeds office.

“The documents were not in the strongroom where all the documents are officially kept, but were in the possession of the registrar of deeds.” They received the said papers on 25 October. He said the deed showed that the government had purchased the farms for N$43 462 749.75, paid for by Comsar.

“This is highly suspect. According to a report submitted to cabinet, the farms are worth N$12 000 per hectare, which amounts to N$207 million. The report discloses that the president of Namibia and Nujoma knew about this. It also discloses that Nujoma submitted a document to a cabinet committee in which it is asserted that Sardarov, aka Comsar, was prepared to pay the owners of the farms N$12 000 per hectare.”

He alleges that because Nujoma's mandate, in terms of the Act, is to acquire land for the purposes of resettling landless Namibians, and because he could not issue a waiver to a foreigner to own commercial farmland in the country, he “devised a scheme to circumvent the provisions of the Act” by suggesting that Comsar buy the land, donate it to the government and then lease it for their own use.

“This scheme enabled Comsar to be placed in the same position as an owner of the farm.”

Venaani went on to list several alleged contraventions of the Act, including the lease agreement bypassing the new procurement legislation.

He told the court that the government acquired the farms on the same day they were leased to Comsar. Furthermore, the Act only allows a ten-year lease for foreigners. None of the respondents have yet filed any documents to oppose the matter.

Elize Angula acts on behalf of the PDM. No judge has been assigned to the case yet.

YANNA SMITH

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Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 296.82/OZ DOWN -0.0156 | Copper US$ 4.49/lb DOWN -0.0289 | Zinc US$ 2 872.00/T DOWN -1.32% | Brent Crude Oil US$ 85.98/BBP DOWN -0.0239 | Platinum US$ 949.06/OZ DOWN -0.0003