Oranjemund claims Namdeb owes N$121 million

THE Oranjemund Town Council has accused diamond mining giant Namdeb of owing the town more than N$121 million in rent and for the sale of land.

In 2018, the town council and the company entered an agreement for the sale of Namdeb houses and commercial properties at Oranjemund and subsequent private property ownership.

Ministerial approval was granted in July 2018 for the council to sell 1 126 erven, which have been upgraded by Namdeb.

The mining giant was given 12 months (until July 2019) to pay for the properties and have them transferred.

In terms of the agreement, occupational rent became chargeable on properties not sold by the end of this period, and had to be paid to the council.

In a statement the council says Namdeb did not honour this agreement.

“Since 2018, Namdeb has been playing delaying tactics in negotiations with the council in resolving the payment of occupational rent in the absence of land rates and taxes. At the moment, Namdeb is running a ‘real-estate agency’ at Oranjemund, instead of running a diamond mining outlet in line with its mining licence,” the statement reads.

This, according to the council, has put a strain on its development plans for the town and on the provision of essential municipal services.

“They refuse to donate any properties to the local authority council, claiming the council must buy properties if they want to own one,” the statement says.

The town council says it now suspects that Namdeb could generate a substantial income of between N$200 million and N$300 million from the sale of properties at Oranjemund.

Namdeb’s unwillingness to donate the improved properties to the council is discouraging potential investors, the council claims.

“This has also made the costs of doing business extremely high as the mining company’s rental fees are extremely high in the absence of a property ownership regime in town, as most of the properties are owned by Namdeb,” the council says.

Namdeb’s corporate affairs manager, Shangelao Ndadi, acknowledged that the occupational rent money has not been paid to the council, but said all other accounts are up to date.

“This matter has been referred for arbitration by Namdeb for resolution between the two parties, and the arbitration process is being unnecessarily delayed by the council. The council has since rescinded a previous council decision regarding occupational rent, and despite Namdeb having requested the new council resolution or minutes, this has not been forthcoming,” Ndadi said.

She denied claims about the non-payment of rates and taxes, saying Namdeb pays for the 500 properties the company is renting out.

Ndadi said the company charged rent on these properties while waiting for the transfer of properties to be finalised.

Namdeb has offered the properties for purchase by the current occupants, and to date more than 500 tenants have shown their willingness to buy them, she said.

“Namdeb is committed to the successful transition of Oranjemund, which is currently being delayed as the council refuses to allow for transfer of properties, except through a specific conveyancer. It is Namdeb’s view that the only entity currently benefiting from the property sales delay is the Oranjemund Town Council,” Ndadi said.

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