The following articles and statements are provided for public information and copyright vests in the Development Bank of Namibia. For permission to use these items verbatim, or as excerpts, or for photographic permissions, please contact the Corporate Communications and Stakeholder Relationships Specialist on 061 290 8000.

The Development Bank of Namibia has responded to a query on the auction of erven in Rundu by a court-appointed liquidator. The auction takes place on 13 October 2022 under a liquidation order issued by the High Court against Plato Investments and North Eastern Construction Association (NECA) (the developer).

Jerome Mutumba, DBN Head of Marketing and Corporate Communication, indicated that the matter is no longer under the control of the Bank, and that it has no ability to influence the process as the matter is under the purview of the High Court and its duly appointed liquidator.

In terms of the order, the High Court-appointed liquidator is auctioning 42 serviced erven in Rundu with a reserve price of N$150,000 each. Forty erven have partially completed structures. Some community members have queried the reserve price, stating that it places the erven out of reach of Namibians and favours foreign nationals.

On investigation by the Bank, the liquidator has stated that there are 61 registered buyers for the auction, of whom only four are foreign nationals.

This indicates that there is significant demand and financial capacity of local bidders at the reserve price of N$150,000.

Further clarifying the issue, the Bank stated that the matter of the defaulting developers was initiated in the High Court in September 2019. This followed a lengthy period of engagement with the developer to remedy the situation, restructure the debt and enable the debtor to resume payments.

Despite the Bank’s engagement the debtors did not honour the settlement agreement, resulting in a court-ordered liquidation.