By: Justicia Shipena
Lawyers of the Belgian company, ChallengeAir, represented by Anicet Baum, have
threatened to push TransNamib into liquidation should the state entity not settle its debt.
In a demand letter issued via Sisa Namandje &Co.Inc, ChallengeAir gives TransNamib
15 days to settle the EUR 9 863 053.04 bill.
In 2011 and 2015, courts in France and Germany ruled in favour of ChallengeAir
against TransNamib and Air Namibia after failing to pay the N$400 million to Challenge
Air.
The debt comes from March 1998 when Air Namibia, still under TransNamib, leased a
351-passenger Boeing 767-300 from the now-defunct ChallengeAir.
Air Namibia cancelled the lease agreement, saying the aircraft had problems. Although
ChallengeAir liquidated, the debt did not.
However, the government refused to pay, and in 2018, ChallengeAir threatened to
attach TransNamib and Air Namibia assets to settle the N$400m debt.
Namandje gave the government 10 days to negotiate, or ChallengeAir could proceed
with the attachment action.
The transport minister John Mutorwa said they would defend the case, while some
government officials felt it was not right to use taxpayers' money to settle the debt.
In December 2019, Air Namibia agreed to pay after acknowledging owing ChallengeAir
N$333 million. According to that agreement, Air Namibia was supposed to have finished
paying by September 2020.
According to ChallengeAir, the awards have not been settled by TransNamib thus said,
it is clear that TransNamib is unable to pay its debts.
"This letter accordingly serves as a demand of payment of the total outstanding amount
currently standing at EUR 9 863 053.04 within 15 days of receipt of this letter of
demand, failing to be unable to pay your debts. We will proceed with an application in
the High Court seeking TransNamib's liquidation," it reads.
The legal representative added Baum is the sole receiver recognised in the High Court.
"In arbitration proceedings between our client, Air Namibia Limited and TransNamib
Holdings Ltd, a partial final award on liability were made on 6 August 2018 and the final
award on quantum."
Hence, it said the regional court of Munich, Germany order was made against Air
Namibia and TransNamib on 12 January 2015.
"Despite the awards having been brought to the knowledge of Air Namibia (now in
liquidation) and TransNamib, the awards had not been satisfied to this date as our client
only received partial payments from Air Namibia before its liquidation," it stated.
Speaking to The Villager, the public relations officer of TransNamib, Abigail
Raubenheimer, confirmed the state entity received the letter.
However, Raubenheimer said the entity was not party to any settlement agreement with
Air Namibia and ChallengeAir in 2019 regarding the arbitration award.
She said TransNamib is also consulting its legal team.
"TransNamib is consulting its legal representative on the appropriate action to defend
this letter of demand," she said.
The Villager also reached out to transport minister John Mutorwa, who refused to
comment. Mutorwa, along with SOE minister Leon Jooste, was CC'd in the letter.
"TransNamib is a juristic person, so you should go to them first. I don't even know the
letter you are referring to. First, speak to them directly. There are no questions to be
asked. Just do as I'm telling you now," said Mutorwa.
