Hertta-Maria Amutenja
A high-stakes family feud has erupted over the management and ownership of the Afrika Stadt Haus Hotel and apartments in Ongwediva.
Harold Schmidt, a prominent businessman, has filed an application in the Windhoek High Court against his son, Namibia National Paralympic Committee treasurer, Jean-Paul Schmidt and his daughter-in-law, Naomi Schmidt.
Harold claims Jean-Paul and Naomi mismanaged the hotel and is seeking to evict them from the properties he owns.
He also alleges that Jean-Paul threatened to shoot him.
In the court documents, Harold claims that Jean-Paul, whom he initially mentored as an apprentice during the properties’ construction in the early 2000s, failed to make the agreed-upon payments for the management of the hotel and flats.
Harold further claims that Jean-Paul and Naomi agreed to manage the properties, paying N$45 000 for the hotel and N$90 000 for the flats monthly.
According to him, Jean-Paul and Naomi also failed to honour additional financial agreements as a result of their inconsistent payment behaviour.j
“The first and second respondents will: manage the hotel, the flats, and the commercial units on behalf of the second and third applicants, whose management will include the lease of the hotel and the flats. pay the municipal rates and taxes in respect of the hotel and the flats to the Town Council,” read the founding affidavit.
Harold claims that upon his visit to the properties on 11 July 2023 he discovered that the properties were being neglected.
He alleges that the commercial units were mostly empty and in disrepair and that the flats, many of which serve as hotel accommodations, were poorly maintained.
“The commercial units are in the same sorry state as the hotel and the flats. The plumbing, for example, is literally falling apart. To my surprise, the commercial units are mostly empty. One of the lessees told me that people are moving out because their complaints are ignored. For the lessee’s safety, I refrain from disclosing the lessee’s name,” read the documents.
Harold alleges that Jean-Paul made unauthorised changes to the properties and did not properly manage the income, leading to financial discrepancies.
Jean-Paul, in his responding affidavit, refuted these allegations, asserting that he played a crucial role in the development and management of the properties.
He claims a partnership agreement existed between him and his CC, which entitled him to a 30% share of the profits from the ventures.
“I also state that such agreement was ancillary to the primary agreement entered into in 2004 at Ongwediva between the First Applicant and I. Our primary agreement is a partnership agreement involving property planning, development, construction and management, with the object of generating profits for our joint benefit. The launching point hereof was the Africa Stadt Haus Hotel project, which I had been managing since its completion in 2004,” he said.
Jean-Paul insists that he played a key role in every stage of the project, from planning to construction, and that this partnership included the operation of the properties for his benefit.
“I must be compensated for the value of my contributions, which enhanced the value of these ventures and/or properties. I have a claim if the first applicant denies me my share. I have invested 20 years of my life and my input. If I am denied my interest in the partnership, I will exercise a lien over the property in support of my claim for unjustified enrichment,’ he said.
Jean-Paul has now filed a request in the High Court for the recognition of his shares worth N$15 million and the liquidation of the company.
