The Ministry of Sport, Youth and National Service has denied claims that the government paid N$11 million in rental fees for an unoccupied building.
The building belongs to businessman Erastus ‘Chicco’ Shapumba. They called the allegations “false and misleading”.
The controversy stems from a report published in The Namibian yesterday. It suggested that the ministry made an N$11 million payment for the rental of offices that belong to Shapumba, which were not yet in use. In a statement issued yesterday, the ministry clarified the situation.
It stated that the N$11 million claim was inaccurate.
The ministry said the payment in question was a security deposit.
The first rental instalment amounting to N$2 128 500 was made on 7 January by the Ministry of Works and Transport on behalf of the sport ministry.
The ministry said that was the only payment made to date to Shapumba for the building.
The ministry added that this payment officially formalised the lease agreement, “enabling our ministry to proceed with relocation planning, in close coordination with technical partners at the Works ministry.
“Since the building is newly-constructed, and consists of three open-plan floors, the process of partitioning and installing necessary customisations commenced in January 2025”.
The ministry stated that it is important to clarify that the works ministry is responsible for procuring office spaces and managing lease agreements for government ministries in consultation with the respective user ministries.
“Accordingly, the lease agreement for the building in question was signed on 13 December 2023 between City Place and Property Management (Pty) Ltd, owned by Shapumba, and the executive director of the Ministry of Works and Transport, on behalf of our ministry. The agreement stipulates a monthly lease amount of N$990 000, plus value-added tax.
“At the time of signing, the building was still under construction. Both parties mutually agreed to postpone the contract’s effective date. As a result, no rental payments were made between December 2023 and December 2024.
“According to paragraph 11 of the lease agreement, the lessee is responsible for improvements such as partitioning, provided that prior written consent from the lessor and municipal approval (if required) are obtained. The outstanding partitioning on certain floors delayed the relocation. While the ministry has not yet physically occupied the building, it has assumed custodianship of the premises during the transition period,” reads the statement from the ministry.
The ministry added that to facilitate the relocation, under the guidance of the Works ministry, “the ministry has initiated the procurement process for civil, security, electrical and information technology contractors to complete the necessary installations and customisations. Additionally, as a cost-saving measure, the ministry has opted to reuse its existing office furniture and equipment.
Currently, the ministry operates from two locations: the Ministry of Higher Education, Training and Innovation building at the Government Office Park, and the Namibia Industrial Development Agency building.
“However, the higher education ministry has formally requested that we vacate their premises to accommodate their staff. Due to the urgent need for consolidated office space, our ministry agreed to relocate to Erf 126, Independence Avenue, to enhance operational efficiency, and reduce the high costs of renting multiple office spaces,” the statement reads.
– lmupetami@nepc.com.na