Herman Eckwert (61) and his wife Briget (56)  are in limbo over their dream holiday home in Rehoboth, Namibia, after  discovering that the land they built on is the subject of a bitter  ownership dispute. 
The Eckwerts — who own Klein Windhoek  Schlachterei in Windhoek — are one of dozens of property owners who are  leasing prime land from a politically connected company called Acasia  Resorts.
Acasia is locked in a court battle with the Rehoboth Town Council, which claims to be the true owner.
The  company’s sub-tenants include wealthy business people such as the  Eckwerts, government ministers — including public enterprises minister  Leon Jooste — and well-heeled professionals including doctors and  lawyers.
Their luxury homes overlook Lake Oanob in Rehoboth, a popular  location for canoeing, aquacycling and boat parties about 80km from  Windhoek, and the site of the upmarket Lake Oanob Resort.
 “My  parents thought that they are leasing the land for 99 years,” said the  Eckwerts’ son Klaus Eckwert, speaking on their behalf. “Now there’s this  court case.” 
He added that his parents are looking to buy, but do not know who from.
Favourable land deal
At  the heart of the ownership battle is a highly favourable lease signed  by Namibia’s current vice-president, Nangolo Mbumba, with Acasia in  November 1994. 
Mbumba, at that time agriculture, water and rural  development minister, agreed to lease out a 4 300 hectare area next to  dam for 50 years, with an option to renew for another 50 years at N$12  000 a year and an annual increase pegged to the inflation rate. 
Acasia  refused to say what it is currently paying the government. However,  agriculture ministry permanent secretary Percy Misika said the company  is paying just N$33 000 a year.
Using official figures for inflation over the past 24 years, The Namibian has calculated that the annual figure should be about $54 000.
None of the sub-lessees Namibian interviewed would disclose what they are paying Acasia. An expert evaluator told The Namibian that the fact that the land is close to the lake increases its value. 
Acasia  was registered as a company two years before signing the deal with  Mbumba. Its largest shareholders were Swapo supporter-turned-businessman  Christie Benade, and Sandra Tjitendero, the late wife of Namibia’s  first parliamentary Speaker, Mose Tjitendero.
Benade, currently the majority shareholder, refused to answer The Namibian’s questions, telling the newspaper to ask the judge of the High Court of Namibia what tenants are paying.
He said the newspaper must put its questions to “the people who took the story to the media”.
Court battle
Sources  said Acasia has been “untouchable” for the past 20 years. What  propelled its deal with Mbumba into the public eye was a housing  development by a private company that bought land from the Rehoboth  council.
Acasia reacted by suing Oanab Dax Investment CC — which  is carrying out the development — the council, the Rehoboth deeds  office, the registrar of deeds and the government, among others. 
The deeds authorities have been drawn into the dispute because they have refused to register Acasia’s lease.
Details  of Mbumba’s generosity — including the modest annual rental and the  length of the lease — are revealed in cabinet papers and other documents  tabled in court. He also refused to answer questions.
Acasia  wants the High Court to stop Oanob Dax Investment from constructing  residential apartments on the land, which they claim they have been  renting from the council since 1994.
Oanab Dax plans to construct a  township of 167 housing units on the 240-hectare Farm 1127, which  Acasia says falls within its lease area. 
Responding to Acasia’s  court application, the Rehoboth council said that there is no legal  relationship between itself, the owner of the land, and Acasia. 
“The  purported agreement being relied upon by [the] plaintiff was signed  with a third party not authorised by the first defendant [the council],”  it says in its court papers. Acasia, therefore, had no legal standing  to bring the application.
The council added that it owned the land  at the time of the 1994 agreement and still does. “The minister and  cabinet had no right or authority in law to have signed and/or to have  taken the decision referred to in the purported agreement,” it said. 
It added that the lease agreement should have been signed in terms of the Local Authorities Act to be legally binding.
It objected that since 1994 Acasia had been sub-letting the land to third parties without the right to do so.
A  prominent property lawyer, who asked not to be quoted, said that if  Acasia loses the court case, it will be forced to negotiate a new lease  with the Rehoboth council as the owners of the land.
The evaluator interviewed by The Namibian said this could result in a far higher rental than it is currently paying.
Million dollar development
The  owner of Oanob Dax, Alfred Stephanus Dax, said that the company bought  his 250 hectares from the local authority for N$5-million and that the  purchase took three to four years to complete.
“We went through all the right channels and followed all the procedures,” Dax said.
He  added that the company had spent at least N$9-million on the project to  date, and that the losses incurred since August this year, when  construction was due to start, run into millions. 
Dax said that  as far as he is concerned, the matter is “clear-cut corruption”. “People  need to be held accountable for this. Some of us are almost bankrupt.” 
Acasia  was incorporated in October 1993, with hotel dealer Ivan Drotsky as  sole director. In 2004 the directors were listed as Benade, pharmacist  Nico Dunn, business consultant Eric Knouwds, and printing entrepreneur  Dimitrio Metzler, who later drowned in a boating accident on Lake Oanob.
Trade  ministry documents show that Benade was the largest shareholder, with  338 900 shares via Capricorn Investment, and Sandra Tjitendero the  second largest, with 281 000 shares via her company, Vajoroka  International. 
Mbumba told The Namibian in 2016 that  Sandra Tjitendero, who died in 2015 was his close friend. Asked whether  he had declared his friendship when he leased the land to Acasia in  1994, he declined to comment.
Drotsky, Knouwds and Metzler could not be traced for comment.
Cabinet decision
This is not the first time the legality of the Acasia lease agreement has been raised.
Court  papers reveal that in 2001 the agriculture ministry under minister  Helmut Angula approached Cabinet on “how to resolve certain issues  regarding the legality” of the lease agreement between Acasia and  government. Angula also wanted guidance on how to deal with the  ownership conflict.
The agriculture ministry proposed that the lease agreement be renegotiated as “the best way out … of the current morass”. 
Cabinet  resolved to terminate the lease agreement and appoint a cabinet  committee chaired by the agriculture minister to renegotiate and amend  the 1994 agreement. 
The Namibian could not establish whether this was done. Asked if the Cabinet decision had been acted on, Mbumba refused to comment.
A  cabinet action letter from that year reveals that a cabinet committee  comprising the trade, tourism and agriculture ministers and the  attorney-general was created in 1994 to discuss Acasia’s application to  develop a resort in Rehoboth. 
The initial application included the establishment of Rehoboth Spa, to which the Rehoboth council lodged an objection. 
Acasia was then offered land adjacent to Lake Oanob, on which it established Lake Oanob Resort.
The  agriculture department’s permanent secretary, Percy Misika, said this  week that Acasia’s agreement with the ministry lasted only until 1997,  after which it signed a new lease with water parastatal NamWater.
Misika  said that this was because Namwater managed the ministry’s water  facilities, including lakes, dams and aquifers. He did not explain its  jurisdiction over the land
One of Acasia’s directors, Nico Dunn,  is leasing a plot from Acasia. Dunn said that while he plans to build,  he is awaiting the outcome of the court case before starting to develop.  
Dunn would not disclose the rental he is paying.
Public  enterprise minister Jooste said he is unaware of any illegality  regarding Acasia’s rights, other than the allegations in the media.
“I secured my plot from Acasia Resorts in good faith,” he said.
The  Rehoboth council was suspended in March this year by land reform  minister Peya Mushellenga because of alleged maladministration.
However,  the minister’s representative, Natalia/Goagoses, said that the land at  Lake Oanob belongs to the council in terms of the decentralisation  policy that came with the establishment of local authorities after  Namibia’s independence.
She would not comment further, saying the matter is before court.
Land ministry spokesperson Crispin Matongela also told The Namibian that according to the Local Authorities Act, land belongs to the local authority which has jurisdiction over it. 
“If  you want to buy or lease land in Windhoek you go to the municipality;  the same goes for other towns. The land belongs to the local authority  in that area,” Matongela said. 
*Ndapewoshali Shapwanale is an  investigative reporter at The Namibian newspaper who is currently  undertaking a fellowship at the amaBhungane Centre for Investigative Journalism.