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.


Similar News


Namibia pledges fish to Cyclone Idai victims

3 days ago - 19 March 2019 | Government

President Hage Geingob has pledged quantities of fish in humanitarian aid to people affected by Cyclone Idai in Mozambique, Malawi and Zimbabwe. In a statement,...

'Rule of law flouted'

4 days ago - 19 March 2019 | Government

Government's decision to implement provisions of a draft bill, so it can accommodate former Vice-President Nickey Iyambo, flies in the face of the rule of...

AG reports non-complying local authorities

5 days ago - 18 March 2019 | Government

The auditor-general, Junias Kandjeke, has reported 24 local authorities to the National Assembly for their perennial failure to submit financial statements to his office as...

Presidency in no rush to replace Steytler

1 week ago - 15 March 2019 | Government

It does not appear as if the Office of the President is in any rush to replace President Hage Geingob's former economic advisor John Steytler.Steytler's...

Uirab receives backing for NAC task

2 weeks ago - 08 March 2019 | Government

The newly appointed CEO of the Namibia Airports Company, Bisey /Uirab, has the full backing of his line minister, John Mutorwa, public enterprises minister Leon...

Public Enterprises Bill back to parliament

2 weeks ago - 08 March 2019 | Government

The Public Enterprises Bill is expected to head back to the National Assembly soon for final vetting, public enterprises minister Leon Jooste has told Namibian...

Action on toilets starts

2 weeks ago - 04 March 2019 | Government

An innovative pilot project, spearheaded by the City of Windhoek and its sister city Bremen, is to supply a small community of around 200 residents...

Development of towns, villages can lower people influx

3 weeks ago - 25 February 2019 | Government

The development of towns and villages around the country will lower the influx of people to Windhoek in search of employment and better basic services,...

Mass housing back on radar

3 weeks ago - 25 February 2019 | Government

Government is currently in the process of refining its previously exorbitant mass housing project, which was put on ice in 2015, according to urban and...

Gambling addicts' days are numbered

4 weeks ago - 22 February 2019 | Government

Dependants and even the community will be able to report excessive gambling by individuals, who will then be banned from gambling establishments and casinos. ...

Latest News

Namibians first!

1 day - 22 March 2019 | Business

The Construction Industries Federation (CIF) of Namibia has proposed that bidders with less than 100% ownership by Namibian citizens should be disqualified from bidding for...

2019 ‘to-do’ lists for business...

1 day - 22 March 2019 | Columns

Getting your business off to a great start in a new year requires planning, critical thinking and dedication to executing your strategy.We asked Forbes Coaches...

A fierce corporate climber

1 day - 22 March 2019 | People

Carlota David-Howoses was born and grew up in Rundu.She attended Noordgrens Secondary School in Rundu, then moved over to Etosha Secondary School in Tsumeb and...

We are at a crossroads

1 day - 22 March 2019 | Opinion

I remember when I turned 29. The battle scars were starting to show. There were hard decisions. The hangovers of 'nice times' and the gay...

Pupkewitz Megaboards opens door

1 day - 22 March 2019 | Business

Pupkewitz Megabuild recently opened a new subsidiary, Pupkewitz Megaboards. “Pupkewitz Megabuild continues to expand its product and service offering in line with the Pupkewitz Group’s...

Satrix lists ETFs on local...

1 day - 22 March 2019 | Business

Satrix on Tuesday announced its secondary listing of its global exchange traded funds (ETFs) suite on the Namibian Stock Exchange (NSX).The listing is the first...

Corruption - A social disease...

1 day - 22 March 2019 | Columns

Johan Coetzee - One of the most popular indices used by investors to provide them with an indication of the level of corruption and governance...

Government pharmaceutical plant on hold

1 day - 22 March 2019 | Health

Government's plan to construct a pharmaceutical plant is on hold until various agreements are reached with private sector partners involved in the project.This is according...

Local content top priority

1 day - 22 March 2019 | Economics

A 'buy local' policy with local content requirements will, in the long run, help smaller businesses to sell goods and services to government.This was the...

Load More