The Oshakati Town Council has resolved to endorse the sale of a controversial 1.7-hectare prime land, previously known as Omatala in Oshakati, to business mogul Erastus 'Chicco' Shapumba.

The land was sold in 2017 for only N$2.5 million, and the council has since proposed a new price.

Situated along the Oshakati main road, the piece of land for decades used to house the town's open market.

Its sale attracted negative publicity as other bidders complained and accused the former council, led by Katrina Shimbulu as town mayor, of illegally selling the land to Shapumba's company, noting that his bid was the lowest.

Court documents indicate that Shapumba's company paid N$2.5 million to the council before the ministerial approval was granted.

This prompted the current council to relook at the controversial land deal in the hope of reversing the sale.

The council, however, resolved to set the new price at N$5.6 million, which will be submitted to the ministry for approval.

Documents in the nbc's possession indicate that Shapumba, the sole owner of Mouse Property, made an offer to bring the total sale of the latter to N$5 million.

However, Hango says the deal, once approved by the ministry, will be accompanied by stringent measures, adding that Mouse Property cannot claim any damages, loss of investment, or other related costs pertaining to the land.

Another is that the company should present the building plan of its envisioned development to the council before approval.

The Erf, 1342, will also not be rezoned for any other purpose apart from that initially presented to the council.

Shapumba said he was not aware of the latest developments and referred the nbc News team to his legal representatives.