SSC stuck with 'hazardous' N$42m CBD plot
The Social Security Commission (SSC) is in a bind after purchasing prime property in Windhoek's central business district (CBD) for N$42 million, which it is now struggling to sell for N$105 million.
The commission initially planned to build a new head office for N$700 million, which would have included space for business and residential occupancy. However, construction never got off the ground.
The SSC spent over N$50 million on earthworks before former board chairperson Johannes !Gawaxab reportedly put a stop to the project.
Now, with a large hole north of Hilton Hotel the only indication of progress, the commission is desperately trying to sell the land to recoup the expenses. Bidders are, however, only willing to pay the market price of N$42 million, a proposition the SSC has refused to accept.
Not making a profit
CEO Milka Mungunda confirmed that the commission only wants to recoup the money it invested in the improvement of the land. “Have you seen how much work we have done? It was for more than N$50 million. We are not even making a profit,” she said.
When asked why the construction was stopped, she pleaded ignorance. “I don't know. I joined SSC after this decision was already made, so I don't know. By the time I got here, it had stopped. Why should I ask? The plan was to sell. There was somebody who was prepared to pay N$104 million. There was no contract. We are going to re-advertise.”
On claims that the plot is now regarded a public health hazard, Mungunda said is not aware of that, but added that they have engineers on standby regarding the land.
Sources said the site has become a health hazard due to rainwater accumulating in the hole, posing risks to residents and businesses at Freedom Plaza.
“We have meetings with the City of Windhoek, we discuss the land on an ongoing basis. It started since I came here. We even had discussions with the neighbouring companies since 2016.”
She added: “At the moment, there are people who are interested and they have made the offers, but I cannot sell it to them because it has to go through the procurement process. It is a prime property. Unfortunately, we have to go through court".
Critical info not disclosed
Documents in Namibian Sun's possession show that the latest bidder, Camelot Investment Group, asked for a review of the selling conditions.
The company informed the commission that its due diligence revealed that critical information had not been not disclosed during the tender process.
“It was confirmed that the City of Windhoek has not and will not extend the construction period for the development of the property. The company will have to pay a substantial amount to the City as guarantee to complete the construction. The company will be liable to pay penalties to the City on a monthly basis due to construction not being completed as per extensions granted to the commission,” Camelot said in a letter to the SSC.
The company proposed a N$4 million down payment and a 60-month installment plan. This request was rejected at an SSC special meeting held on 15 May.
Meanwhile, the City and former owner United Africa Group (UAG) allegedly want the land back.
!Gawaxab did not respond to questions sent to him.
[email protected]
The commission initially planned to build a new head office for N$700 million, which would have included space for business and residential occupancy. However, construction never got off the ground.
The SSC spent over N$50 million on earthworks before former board chairperson Johannes !Gawaxab reportedly put a stop to the project.
Now, with a large hole north of Hilton Hotel the only indication of progress, the commission is desperately trying to sell the land to recoup the expenses. Bidders are, however, only willing to pay the market price of N$42 million, a proposition the SSC has refused to accept.
Not making a profit
CEO Milka Mungunda confirmed that the commission only wants to recoup the money it invested in the improvement of the land. “Have you seen how much work we have done? It was for more than N$50 million. We are not even making a profit,” she said.
When asked why the construction was stopped, she pleaded ignorance. “I don't know. I joined SSC after this decision was already made, so I don't know. By the time I got here, it had stopped. Why should I ask? The plan was to sell. There was somebody who was prepared to pay N$104 million. There was no contract. We are going to re-advertise.”
On claims that the plot is now regarded a public health hazard, Mungunda said is not aware of that, but added that they have engineers on standby regarding the land.
Sources said the site has become a health hazard due to rainwater accumulating in the hole, posing risks to residents and businesses at Freedom Plaza.
“We have meetings with the City of Windhoek, we discuss the land on an ongoing basis. It started since I came here. We even had discussions with the neighbouring companies since 2016.”
She added: “At the moment, there are people who are interested and they have made the offers, but I cannot sell it to them because it has to go through the procurement process. It is a prime property. Unfortunately, we have to go through court".
Critical info not disclosed
Documents in Namibian Sun's possession show that the latest bidder, Camelot Investment Group, asked for a review of the selling conditions.
The company informed the commission that its due diligence revealed that critical information had not been not disclosed during the tender process.
“It was confirmed that the City of Windhoek has not and will not extend the construction period for the development of the property. The company will have to pay a substantial amount to the City as guarantee to complete the construction. The company will be liable to pay penalties to the City on a monthly basis due to construction not being completed as per extensions granted to the commission,” Camelot said in a letter to the SSC.
The company proposed a N$4 million down payment and a 60-month installment plan. This request was rejected at an SSC special meeting held on 15 May.
Meanwhile, the City and former owner United Africa Group (UAG) allegedly want the land back.
!Gawaxab did not respond to questions sent to him.
[email protected]
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