Alleged concerns over Gipf funds at Osona village housing project
A document submitted to the Okahandja Municipality and seen by Network Media Hub (NMH) has raised concerns about governance, infrastructure and affordability at the Osona Village development, prompting questions about whether the project still aligns with its original public-interest housing mandate.
According to the source, the document was prepared to brief newly appointed councillors on potential governance and infrastructure risks linked to the development.
The document outlines a range of issues, including the absence of a permanent wastewater treatment plant, recurring electricity disruptions and concerns about procurement practices and market concentration within the development.
It states that more than N$15 million has been spent on interim wastewater solutions while a permanent plant is still outstanding, raising concerns about environmental risks and long-term sustainability. It also points to frequent power outages affecting residents, particularly during the rainy season.
On governance, the document claims there have been no formal procurement policies in place for over a decade, with service providers allegedly appointed without transparent processes. It further raises concerns about the concentration of housing construction among a limited number of developers, questioning whether this aligns with the project’s initial goal of supporting small and medium enterprises.
The document also questions whether rising land and housing prices remain in line with the development’s original affordability targets for civil servants and middle-income earners.
It asks councillors to consider whether Osona Village is still operating as a public-interest housing initiative or whether it has shifted into a private development structure with limited municipal oversight. NMH could not independently verify all the claims contained in the document.
Responding to questions, Osona Property Management Company (OPMC) chief executive officer Alex Goethje rejected the claims yesterday, describing them as false, malicious and unsubstantiated.
Goethje said Osona Village is a private development undertaken by Preferred Land Development Holding (PLDH), with partial funding from the Government Institutions Pension Fund (GIPF), and that it remains compliant with its original mandate.
He said bulk infrastructure upgrades are ongoing, including the construction of a permanent wastewater treatment plant expected to be completed by the end of 2026. He added that a second electrical supply point was completed in 2025 to improve capacity, while further upgrades are planned in collaboration with NamPower.
Addressing concerns about electricity outages, Goethje attributed recent disruptions to lightning strikes affecting both NamPower’s distribution lines and Osona’s internal network, adding that repairs were completed within days.
He also dismissed claims of limited competition, saying the development remains open to any qualifying developer and that participation depends on individual capacity and performance.
On governance and labour matters, Goethje said OPMC complies with all applicable laws and standards.
The Government Institutions Pension Fund (GIPF), which invested in the development through its unlisted investment portfolio, said it continues to expect the project to align with its developmental objectives, particularly the provision of accessible housing for civil servants and middle-income earners.
This week, GIPF spokesperson Edwin Tjiramba said the fund does not manage day-to-day operations, which are handled by appointed fund managers and project-level entities. However, he said GIPF is engaging the relevant fund manager to assess concerns raised, including affordability, infrastructure sustainability and procurement practices.
“We take all stakeholder concerns seriously and have initiated engagement to obtain a comprehensive understanding of the matter,” he said.
Tjiramba added that GIPF has requested information on contractor allocation, procurement processes and whether current development practices support broader participation by small and previously disadvantaged developers.
In a separate development, court papers filed by Menzi Wastewater Management Solutions CC allege that Preferred Land Development Holding (PLDH) breached an agreement related to the expansion of the wastewater treatment plant at Osona. The company is claiming more than N$2 million for costs it says were incurred in advancing the project.
According to the claim, the plaintiff was appointed to act as developer and technical lead but was later replaced, with costs allegedly not reimbursed. The matter is before the court.
Preferred Management Services (PMS) director Jacob Nghifindaka declined to comment on Monday on issues linked to legal proceedings, saying it would be inappropriate to discuss matters that are subject to litigation.
Menzi Wastewater Management Solutions chief executive officer Hans Hamukoto told NMH the company had been involved in earlier phases of the wastewater system and had incurred costs based on an understanding of a long-term working relationship, but was later replaced in the process.
Osona Village, launched in September 2016, was designed as a large-scale housing development near Okahandja, targeting uniformed personnel and civil servants. The project planned 3 419 plots and around 11 000 residential units, marking a significant government-backed effort to expand affordable housing. At the time, media reports valued the first housing phase, which involved actual construction of homes, at approximately N$230 million. The Government Institutions Pension Fund (GIPF) also committed N$3.3 billion through its unlisted investment programme for property development and mortgage financing, with Osona Village forming a key component of this broader initiative.
