On Tuesday 22nd April, President Advocate Duma Boko launched the Bonno Target 3000 Housing Project at Kgale View, a flagship initiative led by the Ministry of Water and Human Settlement through the Botswana Housing Corporation (BHC). Boko hailed the Target 3000 project as a major step towards the national goal of delivering 100,000 homes.
‘Botswana is going to look spectacularly different. We dare not fail. This is the beginning of an ambitious project of wealth transfer, at the end of which 100 000 Batswana shall have titles to real property,’ he said.
Present at the launch was Reagon Craig – Chairman of Ongos Valley, a Namibian property development company whose portfolio includes a large-scale, sustainable housing project that required delivery of 4,500 houses over the 2019 – 2023 period. However, investigations into Ongos Valley’s operations in Namibia revealed that the company had only constructed 371 housing units between 2019 – 2024, implying a 62 houses/year rate on average.
Five days earlier, Ongos Valley had entered into a Memorandum of Agreement with BHC to develop 3,005 affordable housing units over four years (2025-2028). This translated to 751 houses/year, 12 times (or 1,111 percent) increase over the company’s performance in Namibia. While they acknowledged Ongos Valley’s record of delivering 371 homes in Namibia, due diligence consultants Minchin and Kelly and transactional advisors Grant Thorton warned that the pace and scale did not match the capacity required to meet BHC’s expectations of 3,005 houses in four years. Alarm bells were ringing, but the Ministry was tone deaf.
Behind the photo -op smiles, BHC executives hung their heads in shame. They had been bullied into flouting the standard procurement procedure of issuing an Expression of Interest (EOI), evaluating prospective developers and awarding the contract to the most competitive bidder. The BHC propaganda machinery was coerced into toasting the Presidential launch of the Kgale project without any housing plans, enforceable contracts or a due diligence report.
The threat of summary dismissal was real and repeatedly pronounced. In July, the wrath of the powers that be fell upon Permanent Secretary Bonolo Khumotaka after she dared question the Ongos Valley contract. Former Chief Executive Officer (CEO) Nkaelang Matenge was also given his marching orders in October. The body count shot up on Wednesday 28 February 2026, when acting Deputy CEO Steven Ofetotse and Property Development Manager Urban Ferguson were summarily dismissed for allegedly sabotaging the Kgale development project. BHC insiders told Sunday Standard that Water and Human Settlements Minister Onneetse Ramogapi instructed the BHC board to fire the two executives for sabotaging the Ongos Valley project; failing which the board would be dissolved by February 1st.
RED FLAGS
In July 2025, law firm Minchin and Kelly and transactional advisors Grant Thorton bluntly told BHC to ‘carefully reconsider its contract with Ongos Valley to safeguard public resources and ensure that any commitment made was founded on a solid and well-understood risk profile.’
The consultants highlighted significant challenges encountered during the due diligence process, among them Ongos Valley’s reluctance to provide requested information and disclose necessary documentation. Even Ramogapi alluded to that in his report to Boko, when he revealed that the Namibian entity had ‘expressed discomfort that the due diligence exercise had been extended to it.’ This was necessitated by the fact that Ongos Valley Botswana was just a shelf company, established in 2023 with no operating experience.
According to the consultants, Ongos Valley’s dilly – dallying hampered confirmation of its financial soundness, technical operational capacity and ethical standing.
Said the consultants: ‘Significant uncertainties remain regarding the private partner’s willingness to contract on terms fair to BHC, ability to meet contractual obligations, secure requisite financing, and manage the project effectively. This increases the risk of unforeseen challenges, including potential project delays, cost overruns, or compliance issues.’
In light of these unresolved risks, the consultants recommended that the transaction should be reconsidered as it presented an unacceptably high level of uncertainty.
THE UGLY TRUTH
Minchin and Kelly identified several risk factors and revealed Ongos Valley’s dismal failure in financial, reputational, operational, technical and legal due diligence. According to the consultants, Ongos Valley failed to disclose key financial information such as latest management accounts, debtors and creditors ageing analysis, as well as tax compliance reports. Further, the company’s financials for 2023 – 2024 were not audited.
It was also found that Ongos Valley had not carried out any internal audits between 2021 – 2024, which limited visibility into its control environment, increasing the risk of undetected errors and weak governance. The transaction advisors observed that Ongos Valley did not report any revenue between 2021 – 2022, despite incurring operating expenses. This pointed to minimal commercial activity, which made it difficult for the consultants to reliably assess the company’s operational capacity, revenue-generating potential, and long-term sustainability.
Ongos Valley had reported losses across all the four years under the due diligence review. Strangely, the company donated N$ 2.1 million in 2023, recorded as operating expenses. The N$2.1million accounted for 19percent of Ongos Valley’s total operating expenses in 2023. The consultants questioned the allocation of substantial funds to non-operational items such as donations after prolonged losses; as it raised concerns about the company’s financial acumen and prioritization of operational sustainability.
The company had loans payable to its shareholders, which reflected limited confidence by shareholders in its long-term viability. By retaining creditor status, shareholders secured repayment priority in case of liquidation, suggesting reluctance to fully absorb business risk.
‘In all the four years under review, total liabilities exceeded total assets, resulting in a negative net asset position. A persistent negative net asset position indicates that the company is technically insolvent, raising concerns about its long-term financial sustainability, its ability to meet obligations, and its capacity to raise additional funding,’ read the due diligence report.
Ongos Valley’s accounts receivables included a substantial VAT component across all four years under review. This raised concerns about the size of projects the company had undertaken, as low revenue generation potentially reflects small-scale or delayed projects. The consistently high VAT receivable also reflected a higher input VAT over output VAT, implying that the company’s costs regularly surpassed its revenue.
According to the consultants, Ongos Valley reported substantial trade payables across all four years under review, indicating a consistent accumulation of unpaid supplier balances.
‘Persistent non-payment of suppliers may strain relationships and result in disrupted supply chains. This could delay project execution, increase costs, and ultimately impact the company’s ability to deliver on contractual obligations,’ warned the consultants.
The company’s debt made up more than 100 percent of its capital structure; while its liabilities exceeded its total assets. This posed solvency risks, exerted pressure on cashflows and reduced financial flexibility. Ongos Valley’s asset base was heavily concentrated on inventory, such that its liquidity and solvency were heavily tied to inventory realization. Should there be project delays or failure to sell, Ongos Valley would face working capital strain and difficulty meeting short-term obligations.
THE HOUSE OF CARDS COMES TUMBLING DOWN
In December 2025, barely six months after President Boko launched the ‘new era for Botswana’s housing landscape,’ the much-touted partnership between BHC and Ongos Valley collapsed. Then acting CEO Pascaline Sefawe confirmed that the catalytic housing development project hit a snag after negotiations with Ongos Valley collapsed.
‘It was very unfortunate that the project was launched, but negotiations with the partner did not go well. We had to terminate discussions,’ she said.
Internally, BHC employees breathed a collective sigh of relief. They were heavily opposed to the allocation of serviced prime land in Kgale to a dubious foreign company, that would sell it, generate profits and repatriate them outside Botswana.
‘The 3,000 housing units in Kgale were already planned for by BHC. So, there was no need to hand over the project to Ongos Valley on a silver platter,’ they said.
Silently, BHC technocrats scoffed at the Boko administration’s target of 100, 000 housing units in two years. Since inception in 1971, BHC has built just over 27, 000 housing units country wide, and they still have unsold inventory. Further, flooding the market with 100, 000 housing units would distort the property market and greatly reduce prices.