NHE facing cash flow and liquidity challenges

By: Josia Shigwedha

A leaked internal letter has revealed that the National Housing Enterprise (NHE) is facing a severe cash flow and liquidity crisis, prompting the institution to implement sweeping cost-cutting measures aimed at stabilising its financial position.

The confidential communication, seen by this media house reveals that the company has enforced urgent interim measures to mitigate the crisis, including sharp reductions in travel, accommodation, and event hosting expenditures.

The internal memo dated 16 July 2025, written by the chief financial officer, Beverly Vugs to the NHE Exco and management proposes the immediate suspension of elaborate site handover ceremonies, which reportedly cost between N$350,000 and N$500,000 per event.

Other measures include limiting travels a cut in external events, which have been proposed to be done at NHE premises as well as a vigorous drive towards debt recovery to enhance credit function.

“For NHE to continue as going concern and to self-sustainable in medium to long-term, it is absolutely paramount that both the Board and EXCO are fully and acutely aware of the dire financial position confronting the enterprise.”

“There is an unwavering imperative that all non-essential and non-core expenditure drastically be reduced and contained.”

“Concurrently, revenues must be aggressively increased, and a deliberate, concerted, and urgent effort must be geared to secure GRN Guarantee to increase output and generate sufficient revenue to cover operational expenses and roll out capital projects.”

“Our collective and immediate action on these fronts is non-negotiable for the very future of this Enterprise,” wrote Vugs.

She highlighted that site handover travelling must be limited to 1–2 major events per year, with only essential departments such as CCM, sales, and projects should be involved, while board representation will be restricted to the Chairperson only, unless otherwise required by the minister.

In the letter, Vugs further directs that the institution’s newly upgraded internal conference facilities be fully utilised for internal engagements, rather than flying staff across the country.

She said it was more cost-effective for trainers to travel to the regions rather than having regional staff travel to Windhoek.

Vugs adds that all strategic sessions and internal meetings must now be held strictly within Windhoek municipal boundaries to reduce expenditure on subsistence and travel (S&T) allowances and accommodation.

When approached for comment, NHE spokesperson Matali Mutonga responded via email, saying:

“The communication referred to is meant for internal consumption, and as a result, we will not validate it in the public domain.”