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WINDHOEK
Prime Minister Saara Kuugongelwa-Amadhila faces renewed scrutiny over the way she acquired a farm she eventually sold to government, with questions raised on whether she used a local businessman – who only owned the farms for nine months – as a conduit in the deal.
Government had previously declined to buy the farm, citing that it was not suitable for resettlement purposes.
A banker acquired the land from the previous owner in February 2012 and, in a matter of months, sold it to the PM – in December of the same year.
The PM then sold the farms, which cost her N$5.2 million, to government in 2020 for N$14.5 million.
Government this week admitted it still does not know what to do with the farms.
The agriculture, water and reform ministry said it is waiting on its technical team for recommendations. This while one of the farms is currently home to a group of settlers from the Hai//om San community.
Kuugongelwa-Amadhila’s farm deal has once more sparked public debate on how the wealthy and politically connected exploit the system to own multiple commercial farms at the expense of poor communities.
The Namibian reported earlier this year that an updated report on the implementation of the second national land conference’s recommendations, issued by the office of PM, indicated that the proposal to introduce a policy to prevent Namibians from owning more than one farm is unlawful and will not be implemented.
Delegates who attended the conference wanted government to introduce a one-Namibian, one-farm policy.
Smokescreen
According to documents at hand, a company called Seize the Moment Investment Fifty-Six CC, currently owned by Kuugogelwa-Amadhila and her husband Tobias Amadhila, was central to concluding the deal - which was described “usury” by an observer who briefed Namibian Sun about the transaction.
The company had three owners between 2010 and 2012.
It was first owned by Catharine Grobler when it was established on 10 February 2010, who then sold it to banker Nicolaas Grundeling on 27 July 2011.
Grundeling sold it on to the Amadhilas on 3 December 2012.
But before jumping into business with the politically exposed couple, Grundeling purchased two farms - Duwib No 1149 and Portion 1 of Farm Goab - through the company on 28 February 2012 from Karl-Heinz Friedrich for N$5.2 million. This transaction was financed by First National Bank (FNB).
He owned the company and the farms for nine months before the Amadhilas took over ownership.
They then applied for a N$12.7 million loan from Agribank, which was granted on 27 March 2013.
Interestingly enough, Grundeling’s bond for the farms was paid off the very same day the Amadhilas bagged the loan.
It is not known whether proceeds from the Agribank loan were used to settle Grundeling’s debts at FNB.
Middleman
There are claims that Grundeling has past links to the Amadhilas and that he was just used as a middleman in the transaction.
An official source privy to the deal said the previous farm owner was just a placeholder to avoid public scrutiny.
“Remember, these farms were offered to government a few years before that transaction, but government declined because they felt it was not good for resettlement purposes.
“The transaction would have raised eyebrows if the PM had bought it directly from the initial owner, especially when considering her public standing. Grundeling was just a middleman used to divert attention,” the official said.
Ghosted
According to land reform minister Calle Schlettwein, Seize the Moment Investment was sold as a going concern to the Amadhilas.
Schlettwein said no waiver was issued because, at the time of the sale, members’ interest did not require to be offered to the state to exercise its preference right. He added that the law was amended to include this requirement in 2014.
Grundeling, who worked at several of the country’s top banks, could not be located for comment. Namibian Sun contacted his brother, mother and several previous employers, but none of them could link this publication to him. Messages sent to him on Facebook yielded no response.
Farm reunion
Publicly available documents from the Deeds Office indicate that the first bond registered on the farms was on 27 March 2013 with Agribank. This was a N$12.9 million loan from the agricultural bank.
That was three months after the Amadhilas took full control of Seize the Moment Investment.
As finance minister at the time, a position she held for 12 years before being elevated to her current role, Agribank reported to Kuugongelwa-Amadhila’s ministry.
Schlettwein, the current lands minister, was her deputy at the time.
It is not known what measures she put in place to ensure that there was no undue pressure or influence on the bank’s management to approve her company’s loan application.
She also did not respond to questions sent to her earlier this week.
With the PM ignoring requests for comment, it is unclear how much the Amadhilas paid to take full ownership of the company which owned the farms.
Namibian Sun asked her, amongst other things, to disclose the value of the transaction when they bought the company from Grundeling and to respond to the alleged underhand dealings during the transaction.
To the rescue
Meanwhile, Schlettwein has gone to great lengths to defend the deal, which he signed off on behalf of government in December 2020.
He said the PM’s company did not get any preferential treatment and that the millions paid to acquire the farms was their real value.
Schlettwein highlighted that the law compels sellers to give government the first option to buy a farm, hence last year’s offer when the PM’s company offered the land to government on 17 January 2020. The offer was made two months before Schlettwein joined the land reform ministry.
Namibian Sun asked Schlettwein to provide evidence whether the farm was offered to the state by Grundeling before he sold it to the Amadhilas through his company in December 2012. This request has yet to be met.
Furthermore, two land reform officials who spoke to this publication had different views on the issue of the waiver.
One felt Grundeling needed no waiver because the farms were being sold through a company.
“If they did not need a waiver in 2012 when the farms were sold to the PM in 2012, then why is Calle saying the farms were first offered to the state if it is still in a company?” questioned another official.
Moonlighting paradox
The PM has over the years been at the forefront of urging public servants to ensure that their dealings with government is above board.
In 2015, while addressing top government officials on moonlighting civil servants, she said the practice has an adverse impact on service.
She has often targeted civil servants trousering cash from second jobs or other interests outside government which might conflict with their obligations.
“I urge offices, ministries and agencies to take this matter seriously and to use their discretion to determine whether staff members with private business interests are still productive in the public service or whether they should not pursue a business career and resign from public service,” Kuugongelwa-Amadhila said at the time.
One of the key reform proposals she pushed was the declaration of interests requirement for civil servants, which compelled government employees to seek permission to do remunerative work outside the public service.