Multimillion-dollar resort to be constructed on plot exchanged for vehicles

Risk-based Solution (RBS) CC plans to construct a N$30-million resort on the disputed 32-hectare plot on the banks of the Zambezi River, which they obtained through an alleged land-for-vehicles deal.

RBS acquired the 28-hectare riverside flood channel (mulapo) and six hectares of land extending to the Winela Farm boundary between Zambezi Waterfront Tourism Park and the University of Namibia, as well as border plots towards the Zambian border from the Katima Mulilo Town Council for the development of a large-scale tourism and recreational establishment in 2023.

The resort, which will be named Sivieda, will include a luxury riverfront lodge, riverside lodge accommodation, leisure and luxury recreational development areas, small and luxury river cruise boats, restaurants, and public decks.

However, minister of urban and rural development James Sankwasa’s directive for this land that was acquired through an alleged battering system to be returned may just end or delay this ambitious project.

Sankwasa’s decision follows after he discovered in May that the above-mentioned plot and two other town plots were exchanged for vehicles, laptops and drones.

He reasoned that not only were these deals done without ministerial approval, but land could not be exchanged for vehicles. He said “a vehicle depreciates, and land appreciates. Therefore, there can never be transactional correctness there.” RBS owner Sindila Mwiya last week told The Namibian that the deal will remain as it is.

“As for the return of the vehicle, there is a council resolution and a signed deed of sale governing this transaction,” he said. He then provided The Namibian with documents that showed RBS initially applied to purchase 28 hectares of flooding river channel for N$1.2 million cash, whereby they would also be responsible for all the additional town planning and services costs.

“If approved and allocated the land, the company is prepared to immediately pay N$1.2 million to the Katima Mulilo Town Council on issue of the letter of allocation,” the documents states.

However, upon approval, the Katima Mulilo Town Council, through chief executive Raphael Liswaniso’s office, stated that RBS instead should buy two sport utility vehicles (SUVs), two new quad bikes, three second-hand quad bikes, a survey drone, and two quality laptops for 31 hectares.

In response to this, RBS then accepted the conditions and procured two new 4×4 SUVs costing roughly N$1.5 million, four new quad bikes for N$ 188 800, a drone for N$ 31 275, and two new laptops for N$48 000.28. The documents further highlights that the total costs of goods was approximately N$1.7 million, plus delivery costs of N$30 000, higher than the initial N$1.2 million.

“Therefore, for the additional N$556 579, we would request an additional six hectares of land,” the documents says. Liswaniso told The Namibian last month that the council has taken a resolution to stop using the vehicle they received through these deals, and they await further directives from Sankwasa’s office.

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