Duty-free operator evicted from Hosea Kutako International airport, according to reports

Nicole Mezzasalma

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SE Duty Free Trading has been ordered to vacate the premises following a dispute with Namibia Airports Company

Duty-free operator SE Duty Free Trading (SEDFT) has been ordered by the High Court of Namibia to vacate the retail space that its shop has been occupying for the past 10 years at Hosea Kutako International airport, according to reports from local newspaper The Namibian. SEDFT filed a case with the High Court asking for the decision by airport authority Namibia Airports Company (NAC) to award the five-year duty-free contract to Paragon Investment Holdings, who beat SEDFT and United Africa to win the tender, to be overturned; however, the company was instead ordered to vacate the premises immediately and to pay for NAC’s legal costs.

SEDFT managing director Samson Kaulinge argued that Paragon won the tender despite offering worse terms than his company. He proposed a monthly rental of N$270,900 ($38,633) or 28% of the shop's turnover for the first year of the new contract, whichever was higher, while Paragon offered the highest of N$200,000 ($28,557) a month or 18% of turnover as rent. Kaulinge also claimed that NAC changed its evaluation criteria for the tender from those stipulated in the tender requirements without informing his company.

Kaulinge added that his company was offering to pay the proposed rent of N$270,900 ($38,633) a month if it was allowed to keep the store open while its review application was being dealt with in court. However, NAC asked for SEDFT’s eviction in order to refurbish the shop before Paragon’s contract begins on February 1.