Hertta-Maria Amutenja
The National Housing Enterprise (NHE) has dismissed reports that it spends up to N$500,000 on site and house handover ceremonies, following the circulation of an internal memo that raised concerns about expenditure and financial management.
In a media statement issued on 30 July 2025, NHE stated that, “no site handover has ever cost the enormous figures quoted in the memo and sensationally reported by the media.”
This follows media reports based on an internal memo that raised concerns about high expenditure and financial management.
In a statement issued on Thursday, NHE said, “No site handover has ever cost the enormous figures quoted in the memo and sensationally reported by the media.”
The statement was in response to a 16 July internal memorandum from the chief financial officer to NHE management. The memo referenced alleged high costs related to ceremonial events.
Media reports citing the memo claimed that handover ceremonies could cost between N$350,000 and N$500,000.
NHE called the figures inaccurate and said the memo “contained material inaccuracies.”
The state enterprise added, “It is absurd to suggest that an event that involves less than 10 employees would cost half a million dollars.”
NHE cited a recent site handover held in Walvis Bay on 29 July for the construction of basic services to support 151 houses.
It said only five employees attended and that the costs did not match those reported in the media.
“The Enterprise places it on record that no site handover has ever cost the enormous figures quoted,” read the statement issued through the office of its executive officer.
NHE also addressed house handover ceremonies, which are held after project completion. It pointed to the most recent event in Omuthiya, Oshikoto region, on 4 July 2025.
“The confirmed administrative cost [of the event] is way below the quoted N$500,000.00. It would take some extraordinary undertaking to surge the cost of a House Handover Ceremony to half a million dollars,” NHE said.
The enterprise stated that its spending is governed by approved procedures and guided by sound governance principles.
“The measures implemented to contain costs are aligned with standard operational practices and are guided by sound governance principles, ensuring adherence to approved policies and procedures.”
Responding to broader concerns raised in the CFO’s memo, NHE denied that it is experiencing financial distress.
It said it is sourcing additional financing to expand housing delivery.
“The intention to pursue additional financing for capital projects aligns with our funding strategy and does not indicate a critical financial crisis but rather reflects a strategic effort to enhance service delivery.”
NHE said housing projects are ongoing in Okakarara, Mariental, Katima Mulilo, Nkurenkuru, Walvis Bay, Swakopmund, Windhoek, Ondangwa, Ongwediva, Oshakati, and Rundu.
It confirmed that the development of 2,000 houses under the National Informal Settlement Upgrading Project (NISUP) remains a priority.
“An allocation of N$50 million has been made towards NHE for the NISUP by the Ministry of Urban and Rural Development,” the statement read.
The enterprise added that there is no uncertainty about the release of the funds.
