OKONGO – A group of Okongo homeowners say they are victims of a failed housing project which has forced them into a financial stranglehold.
They are now paying mortgage instalments on incomplete, unoccupied houses while still forking out rent elsewhere. The residents of Block 103 remain stuck in a cruel limbo, paying for roofs over their heads that they have never slept under. A triangular relationship involving First National Bank of Namibia, the Okongo Village Council and property developer OLC Properties cc, is in focus.
The trio’s entangled dealings have left at least nine homeowners without answers, and most critically, without homes. Clients, who took out loans ranging from N$480 000 to N$630 000, say they started repaying mortgages to FNB in December 2024, although they have not moved into the houses.
The homeowners accuse the village council and the bank of approving the housing project on unserviced land, allegedly contravening Namibia’s land policies.
The law requires that land be fully-serviced with water, electricity and roads before financing and development commence.
“It is inhumane. How can I pay N$5 750 on a mortgage, and still pay N$2 300 rent for the place I live in? That is not sustainable,” said victim and group spokesperson, Nicolas Richard.
He said these houses have no electricity or running water. Yet, the developers handed out title deeds and activated loans.
“It’s like being handed keys to a shack in the bush,” said Richard.
He further indicated that the village council is mum, adding that acting CEO Phillepes Mwetulundila refused to write to the bank.
Another victim, Costa Medusalem, complained that despite promises made in contracts signed in September 2023, most of the houses remain incomplete and exposed.
“Some show cracks, leaking roofs and no fencing, making them vulnerable to theft and vandalism,” he said.
They demand answers, as they should be told where they are standing, instead of being treated badly.
Responding to the allegations, FNB spokesperson Kirsty Watermeyer distanced the bank from the brouhaha, saying it is a dispute between the contractor and the village council.
She insisted that FNB was working closely with all parties, but was legally constrained from intervening until official resolutions were reached.
“We do feel our customers’ pain, but we cannot do anything until the issue is resolved,” she added.
Mwetulundila admitted that compliance certificates were issued before the necessary infrastructure was in place.
“The contractor, along with their legal representatives, pressured the council to issue the certificates so that transfers could be processed and payments made,” he said.
He added that the certificates themselves reflect the incomplete state of the project.
“If you look at the documents, you’ll see that we clearly marked ‘NO’ where the council affirms that buildings were not inspected by our building inspector,” he continued.
Political interference
Mwetulundila also pointed to political interference, alleging that former urban and rural development minister Erastus Uutoni instructed the council to transfer ownership of the land from the developer to the individual clients.
That directive, he said, led to changes in council resolutions and even newspaper advertisements, which disrupted the administration and frustrated council staff.
Yesterday, Uutoni dismissed any ties to the botched arrangement.
He challenged those accusing him of instructing the council to transfer land ownership from a developer to individual clients to produce evidence to that effect.
“There should be an official letter. Such things cannot be done verbally. Whoever is accusing me of this should provide the official letter,” Uutoni demanded.
He added that he was preparing to address issues related to houses in Okongo, but time was not on his side. He, however, expressed confidence that the current minister would handle the matter.
Despite the setbacks, Mwetulundila said efforts are underway to fix the situation.
“We have engaged FNB and the transfer attorney to explore solutions. At present, the council is sourcing funds to ensure that the necessary services, water, electricity and roads are installed so that homeowners can finally move into their properties,” he noted.
On its part, OLC Properties says it never expected the council to fail in delivering services, especially after payments from the home loans were made directly to the council for that purpose.
“If all institutions from bank valuators to the council’s lawyer gave the green light, how could we know there would be this kind of failure?” asked OLC chief operations officer Megameno Gideon.
She said OLC proposed a barter arrangement to help the council fast-track service delivery, but the proposal allegedly never made it to council chambers.
Gideon further said there are builders, but saw the cracks in the system and tried to patch them.