The Ministry of Education, Innovation, Youth, Sports, Arts and Culture has paid an estimated N$27.5 million for the past two years in rental monies for a building yet to be occupied.
The building, which cost around N$1.1 million per month, is owned by property tycoon Erastus ‘Chicco’ Shapumba. Although the ministry did not provide the exact figures, in-house calculations place it at N$27.5 million over a period of 25 months
It is in Windhoek’s central business district. The ministry is yet to move in, despite signing the lease agreement on 13 December 2023.
The contract was set to run for three years.
Works and Transport Minister Veikko Nekundi, under whose purview government assets resort, confirmed their dilemma.
The matter was brought to his attention about two weeks ago.
“The ministry of youth requested that they need office accommodation, and our procurement office, together with the ministry, identified the premises.
“So far, the ministry of youth has not given us any instructions or response on the way forward. We cannot terminate a contract just like that; it will have legal implications. The hands of the ministry of works are tied in this matter. It is a sad reality that we are paying for so many months without occupying the building. We have no remedy for this, as the agreement is crafted in such a way that the government cannot pull out. This is what we found out after doing legal analyses. We can pull out, but we still must pay. It was a bad approach; the whole thing was just bad, but I am on top of it,” said Nekundi.
Meanwhile, the executive director in the ministry, Erastus Haitengela, last year justified their decision to rent Shapumba’s building.
At the time, he said the move was aimed at consolidating staff from different locations (including Nida Building and Katutura Community Arts Centre) into one, better-equipped location to improve efficiency and working conditions.
The ministry’s current executive director, Gerard Vries, said, “The ministry is currently in the process of finalising arrangements related to the occupation of the building.”
When this reporter visited the premises recently, there had been construction work being undertaken since last year.
Furthermore, Vries stated that in March 2025, the ministry was merged with the Ministry of Education, Arts, and Culture and the Ministry of Higher Education, Technology, and Innovation.
“The institutional integration resulted in significant operations adjustments, which consequently contributed to delays in the planned relocation,” Vries said.
Asked further if the ministry is still paying rent to the landlord, reportedly amounting to close to N$1.1 million per month, Vries explained that leasing of the government office buildings falls under the mandate of the Ministry of Works and Transport. “As such, this ministry does not have the authority to effect or process rental payments in respect of the said building at this time.”
– lmupetami@nepc.com.na