The government abandoned a cost-effective plan to construct a permanent, five-story headquarters for the youth and sports ministry for a once-off cost of N$50 million, only to later enter into a controversial lease that burns through N$1.1 million a month in public funds for an empty building.
New information has now revealed that the government could have spent N$50 million on constructing an office block housing the youth and sports ministry before 2015, in a move that would have saved the government at least N$70 million if the ministry’s rental agreement with businessman Erastus ‘Chicco’ Shapumba was to be fully implemented.
The executive director responsible for youth, sports, and national service, Gerard Vries, last week told The Issue that the project to build a new head office almost 10 years ago was abandoned due to budgetary constraints.
The revelations come at a time when the ministry is enmeshed in an office rental scandal dating back two years.
Now, The Issue has learned that this scandal could have been avoided had the government kept to its plans for the youth and sports ministry.
Back in 2013, the youth ministry was on a mission. In partnership with the ministry of works, the government had planned to refurbish and modernise the Katutura Multi-Purpose Youth Resources Centre (commonly referred to as the Katutura Youth Complex) into a N$600 million fit-for-purpose centre that would serve the needs of the modern Namibian youth.
The complex faces Bondel Street, which is a small road running adjacent to Hans-Dietrich Genscher Street, and is surrounded by the People’s Primary School, the Katutura Shoprite Shopping Centre, and the old municipal compound SME Incubation Centre.
The complex is also home to the once-famous Independence Arena amphitheatre, which in its heyday hosted world-renowned music legends like Ziggy Marley, Lucky Dube, Aurlus Mabélé, and Brenda Fassie.
Today, the complex has been left to decay and its sports fields turned into a squatter camp for the homeless. Apart from the dilapidated office complex and youth hostels, only the One Economy, Be Free campus for youth and the Football for Hope courts appear to be modern and clean facilities in a sea of filth.
Back in 2013, the mission was to build a youth complex headquartering all sports codes in the country; eateries to be run by the National Youth Service; upgraded sports grounds; modern youth hostels; Namibia’s first sports museum; upgraded entertainment facilities; a logistics and transport hub to accommodate tour and charter buses; and a standalone five-story office building to accommodate the youth and sports ministry.
Although the project was to be completed in phases and not as a once-off, constructing the ministry’s head office was going to cost N$50 million. Already by then, the ministry’s support services like administration, finance, and human resources were being housed at the government office park, while it occupied three floors in the Nida building housing the ministers, executive directors, as well as the sports and youth directorates.
The new building would have housed the whole ministry under one roof. This project was going to save costs on land purchasing as the complex already belongs to the ministry.
Phase one of the project kickstarted with the construction of a wall costing N$9 million around the complex. But in 2015, the works ministry allegedly pulled the plug on the project, also leaving the wall incomplete.
Vries insisted that matters related to office rentals, construction, or payments are the responsibility of the Ministry of Works and Transport.
Ministry of Works and Transport executive director Jonas Sheelongo was unable to respond to detailed questions, at the time of publication, due to his demanding schedule.
ENTERS THE SHAPUMBA HOTEL
Media reports since 2024 have publicised how the then Ministry of Sports, Youth, and National Service controversially entered into a three-year rental contract at a N$1.1 million a month rate. The building in question belongs to prominent businessman Erastus ‘Chicco’ Shapumba in Windhoek’s city centre, situated at the corner of Independence Avenue and Daniel Munamava Street across from NamPost.
The media scrutiny is triggered by revelations that from the date the contract was signed, during December 2023, the government has been paying the N$1.1 million monthly rent but has still not occupied the building.
The criticism stemmed from the fact that the ministry was also forking out N$450 000 in monthly rent to the Namibia Industrial Development Agency (Nida) building where they are currently housed.
“The building was deemed structurally unsuitable for its intended purpose,” said ministry executive director Vries, who confirmed that the building was not fit for office use. Government officials familiar with the situation told The Issue that the building appeared to be a hotel or apartment accommodation facility with all rooms coming fitted with ensuite bathrooms. This presented a problem for the ministry, with the solution being the government forking out an additional N$44 million for remodeling and partitioning the floors and converting them into an office complex.
Now questions are being asked about how a government entered into a lease agreement for a building that was not fit for purpose; whether the procurement laws have been sidestepped; and which government lawyer approved such a contract, which puts the government at a disadvantage.
People familiar with the case told The Issue that departments dealing with office rentals at both the youth and works ministries have been sidestepped.
The Issue has further learned that in a bid to make use of the Shapumba building, the youth ministry allegedly issued a circular to its regional offices instructing that all old furniture no longer in use should be sent to the said building.
“The ministry unequivocally refutes claims that furniture collected from regional offices was stored in the building. The ministry’s records indicate only the existence of furniture earmarked for distribution to various offices, which was duly dispatched in accordance with established procedures,” said Vries, in his emailed response last week. He added that all of his ministry’s furniture has since been removed from the Shapumba building.
Vries also refuted claims of a government investigation into the matter, stating that his ministry is not aware of any probe, nor was he asked to make any representation to anyone about the matter.
Vries confirmed last week that the ministry was still housed in the Nida building and is actively looking for suitable office accommodation to house the ministry.
Businessman Erastus Shapumba has been quoted in the media denying any wrongdoing and stating that he does not get involved in drafting contracts since he cannot read.
Contradictory Figures
Vries told The Issue that the ministry’s rent at the Nida building is N$400 000 monthly, while media reports have quoted a figure of N$450 000. Vries also stated that the cost of alterations to the Shapumba building would have been N$33 million if the quotation to do the work was to be actioned. However, impeccable sources told The Issue that the alterations were set to cost N$44 million and that the contract allegedly stated that all alterations will be paid for by the government at no cost to Shapumba, and that the government cannot claim money spent on upgrading Shapumba’s building.
