Sostenus Wilherm
The Namibia Industrial Development Agency (NIDA) is awaiting a High Court judgment in a dispute with Phat Pharm Construction (Pty) Ltd, which is demanding more than N$3.1 million in damages after an alleged failed agreement to establish a go-karting business at the Rundu Convention Centre.
Justice Gladice Pickering is set to deliver judgment on 17 July 2026 in the matter between Phat Pharm Construction as the plaintiff and NIDA as the defendant.
The case stems from allegations that NIDA breached a lease agreement after approving Phat Pharm Construction’s proposal to develop a go-karting facility on Erf R/3740, located at the NIDA Rundu Convention Centre.
According to court documents, Phat Pharm Construction, represented by James Tjango, applied in June 2024 to lease the property for the development of the recreational business.
The company claims that on 18 November 2024, NIDA accepted the offer through its property manager by issuing an “Acceptance of Offer to Lease NIDA Rundu Convention Centre Erf R/3740”, creating a binding agreement between the parties.
Under the alleged agreement, Phat Pharm Construction was expected to establish a go-karting business, while paying N$9 000 monthly rent together with a rental deposit and additional administrative fees.
The company claims it fulfilled its obligations by paying the required lease payments, deposit, stamp duty, ITC and administration fees.
The court documents state that NIDA later facilitated the site handover on 13 December 2024, after which Phat Pharm Construction began preparations to develop the site.
The company alleges that NIDA was aware that significant improvements and preparation work would be required before the go-karting facility could become operational.
As part of preparations, Phat Pharm Construction claims it hired machinery for site clearing, entered into an agreement with Peke Power & Civils for site mapping, architectural designs, planning and 3D renders, and imported gravel for construction of the racetrack.
The company further claims it transported go-karts from Walvis Bay to Rundu in anticipation of launching the business, but the vehicles have remained in storage while additional expenses continued accumulating.
Phat Pharm Construction alleges that NIDA later repudiated the lease agreement, preventing the company from completing the project and launching operations.
The company argues that the alleged breach caused substantial financial losses after it had already invested in preparing the site and securing equipment.
Phat Pharm Construction is claiming N$3 128 188.90 in damages from NIDA.
The amount includes N$171 488 for site mapping, architectural drawings, renders and transport costs; N$19 765 for rent and deposits; N$74 032.90 for transporting the go-karts from Walvis Bay to Rundu; N$2.467 million for machinery hired to prepare the land; and N$392 080 for gravel imported for construction of the racetrack.
The company is also claiming N$3 690 for an outstanding water bill linked to the property.
In addition to the damages, Phat Pharm Construction is seeking interest at 20% per annum from the date of judgment until final payment, as well as legal costs.
The company argues that NIDA’s actions amounted to a wrongful repudiation of the agreement, resulting in losses after it had committed resources towards establishing the business.
NIDA has opposed the claim, with the matter now before the High Court for determination.
