Sankwasa blocks NHE board’s bid to extend 60-year-old CEO’s contract

Minister of Urban and Rural Development James Sankwasa has rejected a request by the National Housing Enterprise (NHE) board to extend the contract of its chief executive, Gisbertus Mukulu.

Mukulu (60), whose contract is set to expire on 30 June, was seeking another five-year extension, which would have seen him remain at the state-owned housing developer for 15 years.

“Yes, I can confirm that I have rejected it, but I won’t provide the reasons publicly,” the minister says.

Since its establishment in 1993, NHE has built about 21 500 houses. In the 2023/24 financial year, NHE delivered just 445 houses.

Sankwasa rejected the proposal to extend Mukulu’s contract in a decision understood to be informed by growing frustration over the slow pace of housing delivery.

The rejected extension would have marked Mukulu’s third term at NHE.

He was first appointed in 2016 by then urban minister Sophia Shaningwa on a five-year contract after working as the Outapi Town council chief executive. He was reappointed in 2021, a move that at the time attracted significant controversy.

Critics at the time, including staff members, questioned both the reappointment process and NHE’s ability to meet housing targets, citing missed deadlines and slow project rollouts.

“I will provide my feedback on this matter at a later stage,” Sankwasa said when asked to provide his assessment of NHE’s pace and effectiveness of housing delivery.

NHE previously said structural challenges such as limited land, rising construction costs and funding constraints complicate delivery.

Mukulu yesterday said he preferred not to comment on the matter.

Toska Sem did not provide a public explanation this week regarding the board’s recommendation to extend Mukulu’s contract.

“Please be advised that Gisbertus Mukulu reached the age of 60 in January 2026. His current five-year employment contract will conclude on 30 June 2026, and he is due for retirement,” she said.

Sem said the recruitment process to fill the chief executive position has started and is proceeding through the normal recruitment procedures.

She said NHE remains committed to its strategic objectives, guided by an approved five-year integrated strategic business plan.

“During the 2025/26 financial year, the organisation will continue to pursue various projects, including land servicing, construction and financing of housing developments,” she said.

Sem added that these initiatives are aligned with their mandate and are underway in multiple localities across the country, including Katima Mulilo, Walvis Bay, Swakopmund, Keetmanshoop and Oshakati.

The national housing backlog currently stands at about 300 000 units, with NHE alone registering more than 110 000 prospective homeowners on its waiting list.

Economic and Social Justice Trust chairperson Herbert Jauch says it is surprising that the NHE board recommended extending the chief executive’s contract despite a consistent failure to meet housing targets.

“Their targets have always fallen short, and their deliveries didn’t even meet those targets,” Jauch says.

He adds that the board’s decision is difficult to justify in light of NHE’s performance.

“Against this background, it is a bit surprising that the board proposes an extension to the chief executive’s contract. In what way was delivery so good that they recommended an extension instead of advertising the position? That would be the key question to be answered here. If not, the position should be advertised. The current chief executive may apply but if there is a better candidate then that person might get a chance,” he says.

Jauch acknowledges that parastatal boards are legally empowered to make appointment decisions but says the government, as the shareholder, has a legitimate interest in performance.

“The government is the stakeholder and owner of the company, so the state has a vested interest that NHE must function well and deliver on its promises and targets,” he says.

He says failure to deliver gives the government grounds to question the board’s recommendation.

“If they don’t, then the government has the right to step in and demand clarity from the board on why they recommended an extension,” Jauch adds.

He says the key issues remain housing delivery and accountability.

“NHE, in light of what is needed and an endless waiting list, has not performed to expectations. As the head of the organisation, the chief executive is ultimately responsible.”

He adds that from a public perspective, change appears necessary.

“For the public, what we see is that NHE has not delivered as expected, and, therefore, some changes within the organisation seem necessary,” Jauch says.

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