By Timo Shihepo | 15 May 2025
The Namibia Industrial Development Agency (Nida) has lost N$7 million in unpaid rent after years of delays in evicting a tenant from a Windhoek property.
The state-owned agency has failed to collect rent from the tenant, a businessman, since 2015.
Nida, previously known as the Namibia Development Corporation (NDC), recorded a loss of N$102 million in 2024.
An investigation by The Namibian found that the involved property, measuring 1 425 square metres and located at Erf 197, Gold Street, Prosperita, is occupied by Southern Engineering Close Corporation (CC) – operating as a vehicle mechanic workshop.
The close corporation was owned by James Jacobs, who died last November.
But Jacobs allegedly never paid rent for the building his business occupied on Erf 197.
This prompted Nida to take legal action in 2022, demanding eviction and N$3.7 million in outstanding rent, damages and legal costs.
Since then, the unpaid amount has ballooned to N$7 million.
Jacobs’ lawyers and Southern Engineering CC have denied any wrongdoing.
HOW IT STARTED
The initial agreement was signed on 11 December 2015 by Sarel Losper as the then manager of properties at Nida and by Jacobs as managing director of Southern Engineering CC.
The agreement was for three years and was to be terminated by 30 November 2018.
The initial monthly rental fee was N$25 000, which was increased to N$30 000 in 2017 and 2018.
“Southern Engineering CC failed to pay rental and other costs as per the agreement. When the agreement was terminated on 30 November 2018, Southern Engineering CC has been in unlawful occupation of the premises since 1 December 2018.
“It failed and refused to vacate the premises,” law firm Palyeenime Incorporated says in court documents.
FAILURE TO AGREE
On 28 November 2024, a day before Jacobs died, he attended a meeting with Nida’s acting chief executive, Richwell Lukonga, and other officials to discuss the matter.
During the meeting, a calculation of the outstanding debt had been presented to Jacobs and his lawyer Louis Karsten. Both parties, however, failed to reach an agreement.
Karsten has confirmed the meeting to The Namibian.
“It became evident to the undersigned (Karsten) that a huge portion of the debt became prescribed in terms of the Prescription Act, and the amount of N$7 million cannot in any event be claimed any longer,” he said.
Karsten has accused the employees of Nida and the former NDC of being incompetent.
“If the houses of NDC and Nida were in order, action could have been instituted long ago. But as a result of the fact that the employees at NDC and Nida are incompetent, in so far as the undersigned is concerned, nothing was done to claim the arrear rental amounts allegedly due,” he said.
When The Namibian recently visited the premises, it found mechanics actively working on cars, while scores of vehicles were scattered inside and outside the dilapidated building, which still has air conditioning and Wi-Fi.
Karsten said with Nida’s claim against Jacobs’ estate unlikely to succeed, the agency may be forced to write off the business’ entire debt.
Nida acting chief executive Lukonga has not responded to questions sent to him since February.
“The team is waiting on gathering information,” he has said.
LEGAL ACTION
Seeking to recover the rental arrears and eviction on 29 April 2022, Nida took legal action against Southern Engineering, serving the CC with a summons on 18 July 2022.
But the mechanic workshop challenged the case.
In court documents, Southern Engineering explained its decision to stay on the premises. The company said Nida is required to obtain ministerial consent before taking legal action, as outlined in the Nida Act 16 of 2016.
The company said there is no indication that the minister of industrialisation and trade approved or was aware of the legal proceedings against Southern Engineering.
“The claim also raises procedural concerns. Nida does not explicitly state in its legal filing that it is the successor to the Namibia Industrial Development Corporation (NIDC), which previously held the assets and obligations in question. Additionally, Nida has not demonstrated ownership or a superior legal title over the leased property, a requirement in eviction cases,” said Southern Engineering in court documents.
Based on the submissions above, Southern Engineering said Nida lacks the necessary locus standi (the right to appear in court) herein, and the claim prescribed and asked for the case to be dismissed with costs.
Prescription refers to a period of time set by law after which legal action is barred if no steps have been taken to enforce or litigate.
In May 2023, Nida withdrew the case.
“The action against the defendants is withdrawn. The plaintiff shall pay the defendants’ costs of suit. The matter is removed from the roll: Case withdrawn,” High Court judge Esi Schimming-Chase said at the time.
STAYING PUT
Despite Jacobs’ death, the company still occupies the property.
Jacobs’ lawyer, Karsten, explained that Nida lacked standing and the claim was prescribed under the Prescription Act.
“Nida had no option but to withdraw the action,” he said.
Karsten said Jacobs had previously attempted to meet with Nida, but the agency chose legal action instead.
“Had Nida done its homework, the agency would have realised it cited the wrong party,” Karsten added.
He said a settlement proposal was in progress, with a consultation set for 2 December 2024.
He has since discussed the situation with Jacobs’ widow [only known as Coetzee] who is not involved in the business but is working towards vacating the premises, he said.
Karsten said several government-owned vehicles remain on-site, and notices have been issued for their removal.
“Instructions need to be obtained from Nida as to a date for vacation,” the lawyer said, adding that Coetzee is cooperating despite personal difficulties.
“We intend to resolve this promptly, but Nida must also consider the circumstances.”
