Eloolo Abattoir: Veterans beg for second chance
War veterans have begged the ministry of agriculture, water and land reform to give them another chance to run the Eloolo Abattoir at Oshakati, despite having struggled over the years.
Veteran-owned Namibian firm Kiat Investment Holdings in 2020 partnered with Chinese-owned Ningbo Agriculture Investment Group to run the country’s second biggest abattoir jointly for a decade. But less than a year into business, the facility closed shop. The Chinese dropped their Namibian counterparts due to broken promises and trade shortcomings.
In a letter dated 7 November, the ministry’s executive director Ndiyakupi Nghituwamata informed Kiat of the intention to terminate a lease agreement between the company and government.
In the letter, she said the agreement lapsed over a month ago, on 7 October.
“The Oshakati Eloolo Abattoir is hitherto non-operational, a status which prevailed since the entry into force of the lease agreement on 17 August 2017 and the recommissioning of the abattoir on 18 July 2019,” she wrote.
Nghituwama added that during the past three years since the renovation and recommisioning of the abattoir by government, Kiat has communicated several proposals to commence operations, but none of these propositions have materialised.
The ministry is in possession of a post facto joint venture agreement between Kiat and the Otjikoto Maize Corporation to operationalise the abattoir, which was communicated after the lapse of the notice period and lacks cause, she said.
Rent outstanding
“The ministry hereby wishes to inform Kiat Investment Holding to forthwith vacate the premises of Oshakati Eloolo Abattoir with immediate effect. Further, the ministry wishes to reiterate to Kiat Investment Holdings that the monthly rental fees plus 6% interest reckoned on N$504 400 annual contractual rental amount are outstanding since 18 July 2022,” Nghituwamata wrote.
She said Kiat must immediately settle all the liabilities incurred by the abattoir during the lease agreement.
The ministry further urged Kiat not to remove its movable assets from the abattoir’s premises without its concurrence and presence.
Kiat has on numerous occasions defended its lack of performance and instead blamed government, saying it has not been supported financially and that running an abattoir is "not child’s play". The company said it was left to “figure it out” by itself.
Another chance
Despite the ministry's notice, Kiat director Sikunawa Negumbo yesterday claimed they will restart operations soon.
He said they have already communicated with the agriculture ministry and the process is “at an advanced stage”.
“We are meeting the governor tomorrow to inform him about our plan and that we are resuming operations soon. We have already given our letter to the ministry and by the end of this month, everything should be completed,” he said.
Negumbo added that Ningbo visited the abattoir last Friday and took some items such as CCTV cameras mounted to the walls – despite an agreement that they should not detach items.
“They did it so primitively and they really have no respect for Namibian laws,” he said.
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Veteran-owned Namibian firm Kiat Investment Holdings in 2020 partnered with Chinese-owned Ningbo Agriculture Investment Group to run the country’s second biggest abattoir jointly for a decade. But less than a year into business, the facility closed shop. The Chinese dropped their Namibian counterparts due to broken promises and trade shortcomings.
In a letter dated 7 November, the ministry’s executive director Ndiyakupi Nghituwamata informed Kiat of the intention to terminate a lease agreement between the company and government.
In the letter, she said the agreement lapsed over a month ago, on 7 October.
“The Oshakati Eloolo Abattoir is hitherto non-operational, a status which prevailed since the entry into force of the lease agreement on 17 August 2017 and the recommissioning of the abattoir on 18 July 2019,” she wrote.
Nghituwama added that during the past three years since the renovation and recommisioning of the abattoir by government, Kiat has communicated several proposals to commence operations, but none of these propositions have materialised.
The ministry is in possession of a post facto joint venture agreement between Kiat and the Otjikoto Maize Corporation to operationalise the abattoir, which was communicated after the lapse of the notice period and lacks cause, she said.
Rent outstanding
“The ministry hereby wishes to inform Kiat Investment Holding to forthwith vacate the premises of Oshakati Eloolo Abattoir with immediate effect. Further, the ministry wishes to reiterate to Kiat Investment Holdings that the monthly rental fees plus 6% interest reckoned on N$504 400 annual contractual rental amount are outstanding since 18 July 2022,” Nghituwamata wrote.
She said Kiat must immediately settle all the liabilities incurred by the abattoir during the lease agreement.
The ministry further urged Kiat not to remove its movable assets from the abattoir’s premises without its concurrence and presence.
Kiat has on numerous occasions defended its lack of performance and instead blamed government, saying it has not been supported financially and that running an abattoir is "not child’s play". The company said it was left to “figure it out” by itself.
Another chance
Despite the ministry's notice, Kiat director Sikunawa Negumbo yesterday claimed they will restart operations soon.
He said they have already communicated with the agriculture ministry and the process is “at an advanced stage”.
“We are meeting the governor tomorrow to inform him about our plan and that we are resuming operations soon. We have already given our letter to the ministry and by the end of this month, everything should be completed,” he said.
Negumbo added that Ningbo visited the abattoir last Friday and took some items such as CCTV cameras mounted to the walls – despite an agreement that they should not detach items.
“They did it so primitively and they really have no respect for Namibian laws,” he said.
– [email protected]
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