A property development company owned by politically connected businessman Josef Andreas is selling 264 plots valued at N$200 million across the country, after years of concerns about his influence at Grootfontein and about speculative land practices.
Andreas, known as ‘Baby Blue’ – derived from the colour of his Range Rover – has for years been linked to Swapo secretary general Sophia Shaningwa, who used to be the minister of urban and rural development.
The businessman, who is also the deputy chairperson of a Swapo company, is selling the plots through his company Tulaing Group.
According to a company flyer saying ‘plots for sale’, the largest portion of the portfolio consists of 150 residential plots about 5km outside Grootfontein.
Each plot measures 2.5 hectares and is selling for N$650 000, amounting to a total of N$97.5 million.
The company is also marketing an additional 114 properties with an estimated value of N$106 million.
It is, however, the vacant plots that have some commentators fuming.
Independent Patriots for Change leader in parliament Imms Nashinge is asking whether the conditions attached to the original land allocation to Andreas were met.
He says local authorities and the government should closely examine whether developers have fulfilled the commitments attached to land deals before selling properties for profit.
“Was the land meant to be developed?
Was housing supposed to be built?
Were there specific conditions attached to the deal?” he asks.
Nashinge says municipalities often allocate land to developers based on proposals aimed at addressing housing shortages, and those commitments should be honoured.
“If the land was allocated for development and the developer later decides to sell without fulfilling those commitments, we have a problem. The question is simple: What value was added, and does the selling price reflect that value?” he asks.
Nashinge warns against the excessive commercialisation of land, adding it undermines efforts to address the country’s housing challenges.
Andreas has mostly won big at Grootfontein where he has been accused of politically influencing the council that has for years appeared to favour his deals.
Former Grootfontein local authority Elizabeth Kastoor this week said she bought land from Tulaing Group.
“What was advertised is not what we got.
We were told we would get a location with tarred roads and street lights, but we did not get that.
When we asked Cenored about it, they told us the location is not registered with them for us to get electricity,” she said.
Kastoor said Andreas already owned the plots by the time she became a councillor.
She said one of the issues that later emerged involved municipal rates and taxes linked to the development.
Some homeowners experienced difficulties obtaining completion certificates, since Andreas had not settled the development’s rates and taxes.
“There were homeowners who could not get their completion certificates, because the rates and taxes were not up to date,” she said.
She added that Andreas had sought relief from the municipality regarding the debt of N$3.5 million.
In 2019, former finance manager IIeni Hainghumbi questioned why the Grootfontein municipality wanted to give Andreas’ company special exemptions from paying taxes.
Speaking to The Namibian on Monday, Andreas said property development and sales have been the foundation of his business since 2013.
“I sell, and I develop some. That is my model of business,” he said.
Andreas said he has sold more than 400 properties to third parties over the years and stressed that the current sales should not be interpreted as a sign that he is leaving the property sector.
“It is not that I’m selling so that I go anywhere. That is what I do for a living,” he said.
The businessman, who is known for his close ties with senior Swapo leaders, said some of the proceeds may be used to expand his cattle holdings.
“I’m a good follower of omaludi [a cattle ceremony]. I want this money to buy a few of those cattle so I can play omaludi,” Andreas said, referring to the annual traditional cattle ceremony popular among the Ovakwanyama people.
He said the marketing of the plots started in March, and the properties are not expected to be bought “all at once”.
“Some can even be bought after three to five years, depending on the appetite of buyers,” he said.
According to Andreas, his overall property portfolio is worth more than N$300 million.
Grootfontein acting chief executive Indileni Lungameni this week told The Namibian that Tulaing Group acquired 73 hectares of land at the town. He said this has reduced the housing backlog for civil servants in particular.
“It provided a facelift to the town infrastructure-wise, boosted the revenue base in terms of rates and taxes, and short-term and long-term employment was created as part of local economic development,” he said. Lungameni said Andreas bought the land from the Grootfontein municipality for N$4.2 million.
Former Walvis Bay local authority councillor Gibson Goseb says the country’s land allocation system needs urgent reform to prevent politically connected individuals from benefiting from public land.
He says there have been instances where individuals with links to the ruling party had been allocated large tracts of land at low prices, only for the land to remain undeveloped for years before being sold at a profit.
“The responsible ministry must review the land sale system to do away with speculative developers and politically connected individuals who are in it for profit rather than addressing the housing shortage facing the country.”
