SSC-Avid case rears its head in business deal gone sour

A DISPUTE over the political connections of two key players has led to a split among directors in a newly established low-cost housing construction company.

Idalom Housing Developments was established at the same time the Dignity Housing Initiative of Tony Mbok was failing to get off the ground with the construction of low-cost houses in Katutura. Idalom, owned by two Namibians and two South Africans, they managed to get the sole rights to use the patented Moladi building system – the same system Mbok’s Dignity Housing Initiative intended to use to build low-cost houses.However, before the company got its operations up and running, Peter Mbutu, one of the four partners, resigned because he opposed the involvement of Ralph Blaauw in the business.ENTER BLAAUW Mbutu said he quit because his other partners – Rainer Becker, Dirk Coetzer (SA) and Reuben Kloot (SA) – insisted on getting Blaauw on board.”I raised the issue about Blaauw’s involvement in the Social Security-Avid scandal and said it might not be wise to get him on board.They did not like that and said I was opposed to Blaauw because I am a relative of Hidipo Hamutenya.They also said because I am Hamutenya’s relative, I do not have as many political connections as Blaauw,” Mbutu told The Namibian.His claims were denied by Becker.He contended that although Mbutu had raised concerns about Blaauw’s involvement, it had never threatened their partnership.”Ralph told Peter that his name was clear and that he only intended to assist us with marketing the low-cost houses because he is already in the building industry.He was never interested in buying shares in the company.The main reason for Peter’s resignation is because we offered him shares in the construction company and not Idalom, the mother company,” Becker claimed.According to Becker they created Idalom as a holding company while a construction company was set up under it to do the actual work.Mbutu said the others did not want him to be part of Idalom where decisions would be made for implementation by the construction company.”I had put in money and did a lot of groundwork like talking to local authority councillors where we intended to build the houses.I feel used.Like I was a darkie-for-rent so that they [could] get their project off the ground,” Mbutu said.The Namibian has established that Mbutu lobbied for the project among senior Government officials and some banks, but Becker denied they used Mbutu to do the groundwork.THE TUNE CHANGES Mbutu said Becker changed his tune once Blaauw came into the picture.”He told me that his (Becker’s) Pastor told him that he must not trust in the flesh (Mbutu) but in the Lord,” Mbutu said.Becker responded that it was true that he told Mbutu that they must put more trust in God rather than men, as the project would serve as a ministry.”I told him that the project is there to serve the poor people and not a money-making business.We cannot all just chase the shares.We are disappointed that Peter did not agree with us,” he said.The Moladi process uses reusable plastic moulds to build low-cost houses.The moulds, in the form of the finished house, are filled with an aerated form of mortar.The process is claimed to be faster than traditional methods.Idalom, owned by two Namibians and two South Africans, they managed to get the sole rights to use the patented Moladi building system – the same system Mbok’s Dignity Housing Initiative intended to use to build low-cost houses.However, before the company got its operations up and running, Peter Mbutu, one of the four partners, resigned because he opposed the involvement of Ralph Blaauw in the business.ENTER BLAAUW Mbutu said he quit because his other partners – Rainer Becker, Dirk Coetzer (SA) and Reuben Kloot (SA) – insisted on getting Blaauw on board.”I raised the issue about Blaauw’s involvement in the Social Security-Avid scandal and said it might not be wise to get him on board.They did not like that and said I was opposed to Blaauw because I am a relative of Hidipo Hamutenya.They also said because I am Hamutenya’s relative, I do not have as many political connections as Blaauw,” Mbutu told The Namibian.His claims were denied by Becker. He contended that although Mbutu had raised concerns about Blaauw’s involvement, it had never threatened their partnership.”Ralph told Peter that his name was clear and that he only intended to assist us with marketing the low-cost houses because he is already in the building industry.He was never interested in buying shares in the company.The main reason for Peter’s resignation is because we offered him shares in the construction company and not Idalom, the mother company,” Becker claimed.According to Becker they created Idalom as a holding company while a construction company was set up under it to do the actual work.Mbutu said the others did not want him to be part of Idalom where decisions would be made for implementation by the construction company.”I had put in money and did a lot of groundwork like talking to local authority councillors where we intended to build the houses.I feel used.Like I was a darkie-for-rent so that they [could] get their project off the ground,” Mbutu said.The Namibian has established that Mbutu lobbied for the project among senior Government officials and some banks, but Becker denied they used Mbutu to do the groundwork.THE TUNE CHANGES Mbutu said Becker changed his tune once Blaauw came into the picture.”He told me that his (Becker’s) Pastor told him that he must not trust in the flesh (Mbutu) but in the Lord,” Mbutu said.Becker responded that it was true that he told Mbutu that they must put more trust in God rather than men, as the project would serve as a ministry.”I told him that the project is there to serve the poor people and not a money-making business.We cannot all just chase the shares.We are disappointed that Peter did not agree with us,” he said.The Moladi process uses reusable plastic moulds to build low-cost houses.The moulds, in the form of the finished house, are filled with an aerated form of mortar.The process is claimed to be faster than traditional methods.