GRN refutes paying millions for unoccupied offices

Niël Terblanché

The Ministry of Sport, Youth and National Service refuted claims that the government paid N$11 million in rent for unoccupied office space in Windhoek.

The ministry’s executive director, Erastus Haitengela, in a statement on Wednesday, made it clear that the allegations, published by a daily newspaper, are baseless, misleading, and damaging.

“We call on The Namibian to correct its misleading article. Failure to do so will necessitate further action,” he asserted.

Haitengela also criticised the report, insisting that the claim was entirely false.

“The government has not disbursed N$11 million in rental fees for an unoccupied building. The truth is that only one payment of N$2 128 500 was made, which covered a security deposit and the first rental payment, as per the lease agreement,” he stated.

According to Haitengela, the lease agreement for the new offices at Erf 126, Independence Avenue, was signed between the Ministry of Works and Transport and City Place and Property Management (PTY) Ltd, owned by Dr Erastus ‘Chicco’ Shapumba.

He added that the agreement, which stipulates a monthly lease of N$990,000, was formalised in December 2023, but the effective date for occupation was postponed because the building was still under construction at the time.

“The ministry has not yet physically occupied the building because certain partitioning and installation works are still in progress. This delay is not due to any mismanagement on our part but rather the necessary customisations required for our staff to function effectively in the new space,” he explained.

Haitengela said the Ministry of Works and Transport, which is responsible for managing lease agreements for government institutions, confirmed that technical modifications, including the installation of security, electrical, and IT infrastructure, are scheduled to be completed by the end of February.

He added that the relocation of the sports ministry is set for 1 March.

Currently, the Ministry of Sport, Youth and National Service operates from two locations: the Government Office Park building under the Ministry of Higher Education, Training and Innovation, and the Namibia Industrial Development Agency (NIDA) building.

Haitengela said that due to space constraints and the need for the Ministry of Higher Education to accommodate its own staff, the government decided to consolidate the Ministry of Sport, Youth and National Service into one dedicated office space.

“This move is a cost-saving measure. Instead of renting multiple office buildings, we are streamlining our operations into one location, which will enhance efficiency while optimising government expenditure,” he said.

Responding to the public criticism, he demanded that the publication retract its story or provide substantive evidence for its claims.

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