By Sostenus Wilherm
Okahao Town Council has taken its pursuit of more than N$13.7 million in unpaid municipal debts against Chinese-owned Namibia Dragon City (Pty) Ltd to the High Court, where the long-running commercial dispute has now been referred to mediation in Windhoek.
The case, which exposes years of escalating arrears, disputed settlement compliance and alleged breach of court orders, centres on Erf 1540 in Oshikango Extension 5 — a large commercial property sold by the town council to Namibia Dragon City in 2018.
According to court papers, the transaction was formalised through a Deed of Sale signed on 1 April 2018, with ownership transferred to the company in July the same year. Under the agreement, Namibia Dragon
City assumed full responsibility for all municipal obligations tied to the property, including rates, taxes, water, electricity, sanitation and refuse removal under the Local Authorities Act 23 of 1992.
The council alleges that while it continued to supply services and issue monthly municipal accounts, the company repeatedly failed to settle its obligations, resulting in mounting arrears. By August 2024, municipal records show the debt had already reached approximately N$8.8 million.
Efforts to recover the money date back to 2021 when the council instituted legal action. That matter was later settled in September 2022, with the agreement made an order of the High Court in October 2022, effectively giving it the force of a judgment.
Under the settlement, Namibia Dragon City agreed to cede a portion of the property valued at N$10 million to the town council as a form of set-off against the debt. The agreement also required subdivision and transfer of the land within 13 months.
However, the council now alleges that the company failed to comply with those terms, including the subdivision and transfer process, resulting in continued accumulation of debt and a breakdown in enforcement of the settlement.
Court documents further claim that despite repeated demands, Namibia Dragon City has not honoured its payment obligations, with the total debt now rising to approximately N$13.7 million as of January 2026.
The municipality maintains that the debt is legally binding, arguing that the settlement agreement, having been made an order of court, constitutes a judgment debt enforceable for up to 30 years under the Prescription Act.
During Tuesday’s High Court proceedings, the matter was referred to mediation in an attempt to resolve the dispute out of court and avoid further prolonged litigation.
The outcome of the mediation could determine whether the council finally recovers the millions owed — or whether the years-long standoff continues in the courts.
