Rundu council faces N$1.48m refund following court ruling

The High Court has set aside the Rundu Town Council’s sale of Erf 1390, Extension 4, to Jianwen Investments Namibia CC and ordered the council to refund the N$1.48 million paid for the property.

The matter was brought by the Namibia Mbangura Woodcarvers Cooperative, chaired by Sakaria Lumbala, which has occupied the land since the early 1990s and operates woodwork and joinery activities that provide income to community members.

The cooperative first indicated its intention to purchase the land in 2010 and formally submitted a purchase application in 2017.

According to the court documents, representatives of the cooperative and the council met on 9 October 2023, where it was agreed that the property would be sold to the cooperative, provided public notice was issued to allow objections.

The cooperative accepted the arrangement and requested payment details.

On 19 January 2024, the council published a notice in the New Era newspaper inviting bids to purchase the land at the same amount the cooperative had offered.

Three days later, on 22 January 2024, the council concluded an offer to purchase with Jianwen Investments Namibia CC for N$1 487 760.

Jianwen Investments paid N$892 656 on 24 January 2024, followed by N$150 000 on 29 January 2024 and N$445 104 on 14 February 2024, completing the full purchase amount.

The cooperative challenged the sale, arguing that the council acted unfairly and did not consider its longstanding occupation and contribution to the local economy.

The court reviewed the council’s minutes of the ordinary meeting held on 28 November 2023 and found that they did not reflect any discussion of the cooperative’s application.

“Nowhere in the minutes of the ordinary meeting held on 28 November 2023 were the factors relevant to the applicant’s application discussed, nor do the minutes reflect the basis on which the resolution was made,” reads the judgement.

The court held that public authorities must demonstrate how they assessed the facts before exercising discretionary power, and the absence of such consideration rendered the council’s decision reviewable.

As a result, the High Court ordered the council to reconsider the cooperative’s application afresh and provide written reasons for whichever decision it reaches.

“The offer to purchase signed between the second respondent and the fifth respondent on 22 January 2024 is declared null and void and set aside,” reads the judgement.

All actions taken under that offer have also been nullified.

The court directed the Rundu Town Council to refund the N$1.48 million paid by Jianwen Investments Namibia CC and to pay the cooperative’s legal costs, including the costs of one instructing and one instructed counsel.

The matter has been finalised and removed from the roll.

Attempts to obtain comment from the Rundu Town Council were unsuccessful, as the council had not responded to questions sent to them by the time of publication.

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