PDM drags govt to court over Sardarov’s 99-year lease
The verdict in a matter in which the Popular Democratic Movement (PDM) is suing government over its 99-year lease of farmland to Russian billionaire Rashid Sardarov is expected on 15 August.
PDM brought the application against, among others, the finance and land reform ministers and the president, and claimed that Sardarov donated money to the ministry to acquire land in the Dordabis area and lease it for 99 years to his company, Comsar Properties SA.
The party’s legal representative Jean Marais claimed that the long lease period is, in effect, equivalent to the sale of the land, which - according to PDM - would be unconstitutional since Sardarov is a foreigner. "The government could not reasonably have come to the decision to lease the land for 100 years," he said. "What about the next foreigner with a lot of money?"
However, Comsar’s legal representative Wim Trengove countered that the applicable legislation clearly states that foreigners may buy land in Namibia with the consent of the minister.
Sardarov intended to buy the land, but when the ministry refused, he settled for second best, Trengove explained.
"The law does not prohibit the sale of land to foreigners - the minister is given the discretion to decide. Of course, there are various reasons why it may be beneficial to sell land to foreigners, but one would expect that someone who has made a significant investment would want to be first in line," he said.
‘Unconstitutional’
According to Marais, the agreements between the ministry, Sardarov and Comsar are unconstitutional.
"In the minister's statement, it is clear that he is falling over himself to explain. This should already be an indicator of the ominous circumstances under which these agreements took place... There is no way they could have met the requirements of the law. It's as if they have to take a leap to the left and then a step to the right to evade the matter," he said.
Trengove explained that, according to them, the lease is not equivalent to ownership, adding that that the law provides for Comsar's agreement with the ministry. "Comsar does not have the right to sell, mortgage or lease the land - these are all rights that the owner has, according to the constitution. Comsar and the ministry have no reasons to circumvent the existing legislation, because the legislation makes provision for the land to be sold," he said.
"The minister agreed to the lease agreement. Nothing about the agreement would change if the court decided to label it as a disguised purchase agreement - the only change would be how it is labelled. The difference is not a change in the agreement, " he said.
Trengove also highlighted that PDM did not object to the money donated to buy the land, but only to the 99-year lease the ministry entered into with Comsar.
"It would be completely unfair to only declare one part void. The PDM cannot choose which part of the egg it wants to unscramble. There is no evidence that the two parties acted in bad faith.”
He further argued that PDM could win political points if it succeeds in its application.
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PDM brought the application against, among others, the finance and land reform ministers and the president, and claimed that Sardarov donated money to the ministry to acquire land in the Dordabis area and lease it for 99 years to his company, Comsar Properties SA.
The party’s legal representative Jean Marais claimed that the long lease period is, in effect, equivalent to the sale of the land, which - according to PDM - would be unconstitutional since Sardarov is a foreigner. "The government could not reasonably have come to the decision to lease the land for 100 years," he said. "What about the next foreigner with a lot of money?"
However, Comsar’s legal representative Wim Trengove countered that the applicable legislation clearly states that foreigners may buy land in Namibia with the consent of the minister.
Sardarov intended to buy the land, but when the ministry refused, he settled for second best, Trengove explained.
"The law does not prohibit the sale of land to foreigners - the minister is given the discretion to decide. Of course, there are various reasons why it may be beneficial to sell land to foreigners, but one would expect that someone who has made a significant investment would want to be first in line," he said.
‘Unconstitutional’
According to Marais, the agreements between the ministry, Sardarov and Comsar are unconstitutional.
"In the minister's statement, it is clear that he is falling over himself to explain. This should already be an indicator of the ominous circumstances under which these agreements took place... There is no way they could have met the requirements of the law. It's as if they have to take a leap to the left and then a step to the right to evade the matter," he said.
Trengove explained that, according to them, the lease is not equivalent to ownership, adding that that the law provides for Comsar's agreement with the ministry. "Comsar does not have the right to sell, mortgage or lease the land - these are all rights that the owner has, according to the constitution. Comsar and the ministry have no reasons to circumvent the existing legislation, because the legislation makes provision for the land to be sold," he said.
"The minister agreed to the lease agreement. Nothing about the agreement would change if the court decided to label it as a disguised purchase agreement - the only change would be how it is labelled. The difference is not a change in the agreement, " he said.
Trengove also highlighted that PDM did not object to the money donated to buy the land, but only to the 99-year lease the ministry entered into with Comsar.
"It would be completely unfair to only declare one part void. The PDM cannot choose which part of the egg it wants to unscramble. There is no evidence that the two parties acted in bad faith.”
He further argued that PDM could win political points if it succeeds in its application.
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