Rumours of a rip-off while plots lie idle

10 April 2018 | Government

While many local authorities across the country are finding it difficult to provide serviced land for people to construct houses, the Oshakati town council has about 3 800 serviced plots that are lying idle.

Oshakati, with the assistance of the government through the urban and rural development ministry, has spent more than N$250 million on a mass land servicing programme.

In the past two years Oshakati managed to service 4 402 plots of which 505 have been built on. Stakeholders have described this as disappointing, saying that the construction of homes must take priority over the servicing of land. Namibian Sun has been reliably informed that at Ekuku township, where N$97 million was spent on servicing 2 212 plots, only 268 houses have been constructed, while at Extension 16, where N$74 million was used to service 270 plots, only 22 houses have been constructed so far.

Last year in August, council announced that 978 plots were serviced to the tune of N$140 million at Ehenye. This brings the total number of serviced plots at Ehenye to 1 437 where only 215 houses have been constructed.

In an interview with Namibian Sun, Oshakati's CEO Werner Iita did not deny that the pace of the construction of houses is very slow, especially at Extension 16 which is an area for the higher income group.

As for areas such as Ekuku and Ehenye, Iita explained that the plots were recently developed and handed over, and that construction of houses is expected to start soon.

“Those plots have been allocated to people and developers have been appointed which means construction will start soon,” Iita said.



He however pointed out that the delay can be attributed to the process of financial institutions approving loans for the beneficiaries.



However, the council has been criticised for not allowing beneficiaries to construct homes with developers of their own choice.



Only the residents at Extension 16 are allowed to construct with a developer of their choice because it is a higher income area.



Council argues that the system of providing a developer serviced plots to construct houses is faster but, residents say this makes room for the developers to hike prices to maximise profits.



Oshakati, with an estimate population of 60 000, has a housing backlog of 10 420 of which 3 551 plots have been allocated already.



Last year, seven developers were approved by the council to construct 70 houses each.



The proposals made by the developers indicate that they do not have an exact price for each type of house they will construct.



When asked whether the council regulates how much a developer can charge, Iita said they do not and they only intervene when a complaint is brought to the council's office.



Namibian Sun has been informed that once a resident takes his pre-approved loan to the developer, the developer sets the price on the pre-approved loan and not the price which was presented to council.



“The developers are ripping the people off by asking them to go to the back and get a pre-approved loan. If they see you qualify for N$800 000, they will refuse to construct a N$280 000 house for you. Out of desperation you will end up settling for a N$700 000 house because they will tell you to take it or leave it as there many other buyers,” a concerned stakeholder explained.



When contacted for comment urban and rural development minister Peya Mushelenga said he could not talk about the affairs of Oshakati as he had not visited the Oshana Region yet.



Gerson Keendjele, the owner of Okau General Dealers, one of the contractors who have been allocated 70 plots to construct houses, he said that they have not commenced with the construction of houses because they are still busy with clients securing approvals from the bank.



The agreement between council and the developers is that they should commence with the construction of houses within eight months after ministerial approval and failure in doing so, will cause the allocation to be withdrawn.

KENYA KAMBOWE

Similar News

 

'Fix it yourselves'

1 hour ago | Government

Tenants of government flats at Rundu have made an impassioned plea to the works ministry to do major renovations to the premises, which is falling...

President on the beat

1 hour ago | Government

President Hage Geingob has called for increased police visibility and responsiveness this festive season and said he would join the police on one of its...

2018 ‘trying and testing’

1 week ago - 05 December 2018 | Government

STAFF REPORTERPresident Hage Geingob has described 2018 as a “trying and testing year” for him and his cabinet.“But true to form, we have persevered and...

Koevoet veteran status rejected

1 week ago - 05 December 2018 | Government

The parliamentary standing committee on constitutional and legal affairs has concluded that former SWATF and Koevoet soldiers cannot be included in the Veterans Act of...

Govt coffers swell by N$60m

1 week ago - 04 December 2018 | Government

?With many parastatals always looking to the government for bailouts, it was welcome news yesterday when NamPower declared a dividend of N$60.7 million for the...

Kazapua back in the saddle

1 week ago - 03 December 2018 | Government

Muesee Kazapua has been re-elected as mayor of the City of Windhoek.He was first appointed in the position in 2014 and was re-elected in 2017....

Govt clarifies veterans’ resettlement

2 weeks ago - 23 November 2018 | Government

The Office of the Prime Minister has clarified a cabinet resolution, which purported to show that 70% of resettlement farms would in the future go...

I knew about Namdia - Alweendo

3 weeks ago - 23 November 2018 | Government

Mines minister Tom Alweendo has assured parliament he in fact knew that Namib Desert Diamonds (Namdia) is state-owned. Alweendo found himself the butt of...

Omaruru finances under scrutiny

3 weeks ago - 21 November 2018 | Government

The National Council's Standing Committee on Public Accounts and Economy on Monday interrogated the Omaruru municipality over a disclaimer audit opinion received from auditor-general Junias...

Kahimise, City showdown today

3 weeks ago - 20 November 2018 | Government

The Windhoek High Court is today set to hear arguments from twice-suspended Windhoek CEO Robert Kahimise, who is battling to be reinstated. Kahimise, who was...

Latest News

'Fix it yourselves'

1 hour ago | Government

Tenants of government flats at Rundu have made an impassioned plea to the works ministry to do major renovations to the premises, which is falling...

Cuban doctor charged with rape

1 hour ago | Crime

ELLANIE SMIT A Cuban doctor has been arrested in connection with the alleged rape of a colleague at a local Windhoek state hospital’s flats.Dr...

Refining your leadership skills

1 hour ago | Columns

As a small business owner, it's crucial to be a confident and effective leader, as this will establish your credibility in the eyes of your...

A leader by heart and...

1 hour ago | People

Elizabeth JosephSarel van Zyl, CEO of FirstRand Namibia, has been in the hot seat for the last four years and he has not slowed the...

A Pandora's Box

1 hour ago | Columns

The shocking revelation that police officers across the country are beholden to cash loans, and in fact spend N$40 million a month on servicing loans...

Cheques phased out by Bank...

1 hour ago | Banking

Bank Windhoek’s final cut-off date for processing of cheques as a means of payment will be 30 June 2019. “This is to meet the Namibian...

Maengahama yields great fruit

1 hour ago | People

Elizabeth JosephAfter Maengahama finished high school he immediately started laying the foundation for his future. In 2007 he started at Deloitte and studied long-distance with...

Exam results out on 20...

1 hour ago | Education

The education ministry will release the provisional grade 10 and grade 12 higher level results for fulltime and part-time candidates on 20 December.The ministry will...

Three girls drown in sand...

1 hour ago | Accidents

Three girls, aged 11, 13 and 15, drowned in pits left by sand miners in the Ohangwena Region this week.Some of the pits date back...

Load More