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Home / Armstrong to approach court over botched Rundu deal
Armstrong to approach court over botched Rundu deal
2018-02-06Staff Report 2 John Muyamba Rundu-Rundu-based property developer Armstrong Properties and Construction is waiting for its lawyers to take their N$337-million case to court or to start an arbitration process with the Rundu Town Council. Armstrong company gave the town council until last Friday to compensate them N$337 million for terminating a private-public partnership (PPP) agreement signed between the two. Rundu town councillors were supposed to have decided on the matter last week but their meeting was then postponed. New Era understands the meeting was finally held but Rundu Mayor Verna Sinimbo referred all media queries to the town’s acting CEO Fransiska Thikerete for more information regarding the outcome of the meeting. Thikerete was locked in meetings when this reporter tried to contact her for comment. Sources said the matter has divided the council as some councillors are against the project, while others are looking at the broader picture as the project will benefit the town. Proponents of the project insist the planned construction of 600 houses will stimulate the town’s economy and create jobs, and would mean proper houses and reduce squatting. Speaking on behalf of Armstrong company, Ferdinand Olavi, said: “Nothing yet, we are waiting on the lawyers to tell us, our lawyers will start with the preparations to either the High Court or we go for arbitration.” New Era understands the decision to cancel the PPP agreement came after several councillors started disagreeing on the project which was given the go-ahead by the previous council. Some councillors allegedly used the complaints by some of the community that the project would threaten their mahangu fields, to support their case. Armstrong company was scheduled to develop a new suburb on an 82-hectare plot in an area south of the Rundu-Nkurenkuru road in Rundu. The project would have been the first suburb to be developed by local investors in the town. Rundu has since independence seen the development of suburbs such as Millennium Park, Queens Park and recently Rainbow Village, the old NHE township – also known as Kings Park – and the new NHE mass housing township development next to Unam Rundu campus. 2018-02-06Staff Report 2
