The Namibia Post and Telecom Holdings (NPTH) has turned to the High Court to recover over N$500 000 in rental fees which the Ministry of Works and Transport has allegedly failed to pay, Business Express has established.
The court action was subsequent to demand letters seen by Business Express which are also alleged to have fallen on deaf ears.
The dispute emanates from rental of ERF 8161, Located at Number 140 Lazarette Street, a property previously owned by RCC and sold to NPTH in November 2019.
Documents seen by Business Express show that on or about 31st of August 2020 NPTH represented by their Acting CEO, Kristofine ltembu and the and the ministry represented by Esther Kaapanda concluded a partly written, and/or partly oral, and/or partly tacit agreement in which they agreed to extend a lease agreement which they had with one month upon its expiry.
The extension which would lapse on 30 September 2020 meant that NPTH would allow for the use and enjoyment of the property by the occupant designated by the ministry being the National Forensic Science Institute Namibia.
To this end, rental was set at N$540 846.15.
“The lease agreement including its extensions concluded and terminated as agreed on the 30th of September 2020. NPTH complied with all the terms of the agreement in that it offered the undisturbed use and enjoyment of the property to the occupants designated by the ministry being the National Forensic Science Institute Namibia.
“The ministry has breached the agreement in that despite due and proper demand, the ministry has failed and/or refused to repay to NPTH the outstanding amount in rental arrears in the amount of N$ 540 846.15,” Court documents read in part.
Apart from the rental amount owed, NPTH is also demanding interest tempore morae at the rate of 20%, cost of suit and further and/or alternative relief.
RECURRING MATTER
Documents seen by Business Express also show the prior to the National Forensic Science Institute Namibia renting the premises; NPTH had faced similar none-payment of rent struggle with the now defunct Roads Contractor Company (RCC) which it reported to the ministry.
In February 2020, Itembu wrote to then transport and works Executive Director, Willem Goeiemann pleading for government to settle the bill.
She noted that cabinet approved in terms of Cabinet Decision No. 13th/21.08.19/004, the proposal for Namibia Post and Telecom Holdings Limited (NPTH) to acquire the Roads Contractor Company’s (RCC) property at the current market value. Subsequent to this acquisition, NPTH assumed ownership of the property and signed a lease agreement with RCC for the space occupied.
“Attached hereto is RCC correspondence dated 11 February 2020, informing NPTH of its financial constraints, and further engaged the Ministry of Works and Transport on the matter. We pause here to say that RCC has been defaulting the lease terms by paying late monthly rental and in fact, the rental payment for February 2020 remains outstanding to date,” pleaded Itembu adding that considering this, “we are seeking urgent audience with your good office, to discuss the rental obligations of RCC as well as other important matters pertaining to this acquisition by NPTH.”
“We further wish to inform your good office that continuous non-fulfilment of monthly rental obligations by RCC Will leave NPTH with no other option but to commence with the necessary eviction procedures,” Itembu further stated in the letter.
PAY BACK THE MONEY
On 26 July 2021, Itembu again wrote to the ministry, this time giving the ministry an ultimatum to settle rental debts that had been incurred by the National Forensic Science Institute (NFS) at Namibia Post and Telecom Holdings (NPTH) property (old RCC premises), erf 8161 Windhoek.
“As per the attached letter dated 24 August 2020, the Ministry of Works and Transport (MWT) requested for a one-month extension for the NFSI lease at old RCC, until 30 September 2020. Please take note that the rental for the month of September 2020 is still outstanding to date, despite various telephonic and electronic mails to MWT.
“It is for this reason that NPTH hereby demands immediate settlement of this long outstanding rental. To avoid further actions being instituted against your Ministry, it is recommended that the payment be made on or before the 13th of August 2021.
FINAL DEMAND
Without recourse, Itembu delivered the final demand letter to the ministry of works and transport on 04 November 2021. In the letter, she noted that rental for the month of September 2020 was still outstanding to date, despite various telephonic and electronic mails to the ministry.
“It is for this reason that NPTH hereby demands immediate settlement of this long outstanding rental, payment should be made on or before the 19th of November 2021. Please note that this serves as a final warning, failure to make payment will result on your account being handed over to our lawyers for further actions,” she notes.
Business Express understands that the parties involved were called upon to attend a hearing before the managing judge, Justice Ndauendapo, last week in the High Court to show cause to the satisfaction of the managing judge why there has been no activity in this case for six months and why the case must not be struck from the roll, not to be enrolled again.
NPTH owns 123 properties countrywide, making it one of the largest businesses in the property sector, with a total asset base of N$4.6 billion and total group assets with a net book value of N$14.7 billion. NPTH is set to be dismantled by December 2024, while a consultant will be appointed in due course to assist its board.