The National Housing Corporation (NHC) has officially taken control of a six-storey building project in Morogoro, halting its use and revoking the rights of private investor Sameer Ismail, widely known as Lotto, due to serious violations of a joint venture agreement signed in 2007.
The building, located at Plot No. 67/I along the old Dar es Salaam Road in Morogoro, has faced a 17-year delay since construction began.
NHC made the decision to suspend the project following repeated contractual breaches by the developer, M/S Saze & Samo Investment Ltd, and significant safety concerns identified by independent experts.
According to NHC’s Manager for Public Relations and Communications, Muungano Saguya, the original agreement aimed to deliver a modern commercial building that would stimulate economic growth in Morogoro Municipality. The project was expected to be completed within two years.
“Unfortunately, the investor failed to comply with construction protocols, including hiring unauthorized personnel, operating without the necessary permits, and ignoring critical safety standards,” said Saguya.
Despite multiple warnings and directives from NHC, the developer continued construction without adhering to professional advice. On September 27, 2023, NHC officially reclaimed control of the site and deployed security to protect the public and the property.
Technical evaluations conducted by the Building Consultancy Unit (BICO) of the University of Dar es Salaam uncovered major structural deficiencies that posed a risk to public safety. BICO advised that construction should not exceed three floors.
Nevertheless, the investor unlawfully extended the building to six floors, without approvals from either the Morogoro Municipal Council or NHC.
NHC now intends to complete the project using its in-house experts to ensure it meets proper safety and quality standards.
The agency also announced plans to evaluate the partner’s investment and pursue fair compensation in accordance with the terms of the joint venture agreement and applicable law.
Meanwhile, tenants who had been operating businesses in the incomplete building were ordered to vacate. Many expressed frustration and hardship as they scrambled to relocate.
“This eviction has hit us hard,” said Emil Mshana, secretary of the tenants’ association. “Most of us run our businesses using loans. Now we’ve lost not just our premises, but our long-time customers.”
Tenant Jane Lucas described arriving in the morning to find the building cordoned off with metal sheets and was forced to remove her belongings with no clear relocation plan.
“We should have been given notice. Many of us rely entirely on these businesses. Now we don’t know where to go,” she said.
Under NHC’s updated joint venture policy, introduced in November 2022, the Corporation has intensified project oversight to ensure accountability and delivery.
So far, seven projects have been completed, four have been reclaimed, and six developers have been issued notices for violating contract terms.
NHC has urged all current and future partners to operate with transparency and responsibility and called on the public to engage in national development efforts by upholding legal, technical, and safety standards.