NHE-Afrikuumba mass housing deal queried

THE National Housing Enterprise (NHE) chief executive officer (CEO), Vinson Hailulu, has admitted that the parastatal awarded a N$345 million mass housing contract to a company co-owned by his wife’s cousin.

Hailulu confirmed this at a press conference on Friday when he announced the names of 25 companies that were awarded tenders to build 10 137 houses countrywide as part of the mass housing project, an initiative that will cost the government N$2,9 billion over the next two years.

The company under scrutiny is Afrikuumba Construction, whose executive director is Titus Naakumba, a cousin to Hailulu’s wife. Afrikuumba is in partnership with a South African company Calgro M3 and was awarded a tender to build 1 191 houses at Otjomuise in Windhoek for about N$350 million.

Hailulu denied any conflict of interest in the awarding of the contract, saying he had recused himself from the meeting that decided that the tender should be given to Calgro M3.

“Everything happened in line with the tender procedures, so there is nothing with respect to conflict of interest,” he said.

The government forced foreign companies to go into joint ventures with local companies by giving up a minimum 30% to empower Namibian companies.

Calgro M3, which is assigned to build 1 191 units in Otjomuise but decided to build 2 523 residential units instead, is one of the four South African companies given tenders to build the houses.

Hailulu said he was part of the NHE team that went to South Africa to inspect the work done by Calgro M3 but said “the fact that the Afrikuumba owner is related to my wife did not feature in the decision-making or influenced the tender”.

“After all, the contract was given to Calgro and not Afrikuumba. Afrikuumba is a partner to the South African company who have the right to get whoever (partner they want),” he added.

The Namibian understands that Afrikuumba and their South African partners also received a contract to service about 670 plots in Windhoek.

“You can look at all the records, look at the tender procedures, the minutes and everything,” Hailulu emphasised about the tender process followed.

Senior sources at NHE, however, said Afrikuumba had been given preferential treatment as it is the same company that got the tender to build sample houses that were used for the launch of the programme by President Hifikepunye Pohamba at the end of last year in Windhoek.

Nakuumba declined to comment on allegations of conflict of interest.

Calgro M3 is wellknown for the construction of low cost houses in South Africa. Some of those houses, however, were criticised in the past for poor quality.

Hailulu defended the company, saying it has the experience to deliver since they have built about 37 000 houses before.

The NHE chief said Namibians should have faith in the companies they selected for the project as they have put strategies to ensure that the project is managed according to plans.

Questions have been asked as to how much the people will pay for each house since government incorporated the Build Together Programme into the mass housing project, a project for low income earners.

NHE said the price will be determined by a subsidy from government on the price quoted by the contractors per housing unit. Hailulu said a house constructed for N$200 000 might end up being sold for N$100 00 after the subsidy. Hailulu added that the subsidy will be based on how much a house applicant earns.

For example, Calgro M3 charged the government N$214 000 for a 35,84 square metre house to N$385 000 for a 68,54 square metre house.

“Generally speaking, we are going to have products that will be affordable,” he said.

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