Renthia Kaimbi
The Ministry of Education, Innovation, Youth, Sports, Arts and Culture has sought urgent legal advice from the office of the attorney general to cancel a lease agreement with northern businessman Erastus ‘Chicco’ Shapumba for an unoccupied building in Independence Avenue, documents seen by the Windhoek Observer reveal.
The lease agreement, signed in December 2023 between the Ministry of Works and Transport on behalf of the education ministry and Shapumba’s City Place and Property Management (Pty) Ltd, has cost the state about N$1.1 million per month since 2024 for a building that remains empty and is allegedly unsuitable for office use.
In a letter dated 30 April 2026, executive director Jonas Sheelongo asked the attorney general’s office for urgent legal intervention to terminate the agreement.
The letter refers to meetings held on 14 and 23 April 2026, where officials discussed legal and operational problems linked to the lease.
“It has become evident that continued performance under the lease agreement is no longer feasible or in the best interest of the state,” Sheelongo wrote.
“Accordingly, a decision in principle was reached to pursue the immediate cancellation of the said lease agreement, with effect from the date of this letter.”
Minutes from the 14 April meeting show the building was never occupied because the education ministry found it unsuitable for office accommodation.
Officials estimated that the government would need about N$33 million to redesign and partition the building to meet office requirements. The property was described as more suitable for hotel accommodation than office space.
The meeting also found that the building lacks compliance and fitness certificates.
According to the minutes, officials agreed that “the absence of a compliance certificate for the building stands as sufficient legal grounds for the government to initiate or pursue contract or agreement termination.”
The meeting also acknowledged that terminating the agreement could have legal consequences. Officials noted that the state finance act requires treasury approval before a government can terminate any agreement.
The meeting reviewed legal advice issued by attorney general Festus Mbandeka on 24 March 2026.
According to the opinion, the lease agreement is a legitimate fixed-term contract that expires on 31 March 2027.
The legal advice further stated that the government currently has no lawful basis to cancel the agreement unilaterally unless there is a material breach by the landlord or mutual agreement between both parties.
“The legally sustainable course remains to pursue a negotiated, mutual termination or alternative arrangement to mitigate further financial exposure,” the legal opinion stated.
The attorney general also noted that the state remains bound by the agreement even if the building is not occupied.
The opinion warned that continued payment for unused premises raises concerns about possible wasteful expenditure.
It further stated that if the education ministry identified and approved the premises as suitable, then responsibility for any failure in that process rests mainly with the ministry.
Representatives from the Ministry of Works and Transport, the Ministry of Education, Innovation, Youth, Sports, Arts and Culture, and the Office of the Attorney General attended the 14 April meeting.
The government resolved to engage the landlord and seek termination of the lease on the basis that the building lacks fitness and compliance certificates.
A follow-up meeting was later held on 23 April 2026 with representatives of City Place and Property Management.
The State continues paying about N$1.1 million every month for the empty building.
In his latest letter, Sheelongo asked the Attorney General to advise the Ministry of Works and Transport on issuing a formal cancellation notice to City Place and Property Management. He also requested legal guidance on possible outstanding payments, the return of the property, and any damage claims.
Sheelongo asked the attorney general’s office to treat the matter as urgent.
When contacted for comment, Shapumba referred questions to his lawyer, Veiko Shitilwe Alexander.
“Talk to my lawyer who attended the meeting. He will be able to assist you,” Shapumba said.
Alexander told the Windhoek Observer that the government had already accepted the suitability of the building when it signed the lease agreement.
“In the meeting we attended, they wanted to debate about the suitability of the building. We do not agree with their position that the building is not occupied. We gave them the keys and if they want to terminate the lease, they must pay out the remaining term according to the contract and give our keys back,” Alexander said.
Education ministry executive director Gerard Vries asked for questions to be submitted in writing.
“What you must do now is to put it in writing formally. We do not have a problem with responding, but put it in writing and we’ll take it from there,” Vries said.
Alexander added that his client would agree to a mutual termination if the government pays the remaining N$11 million due under the contract until its expiry in March 2027.
