August 26 denies owing Manani Investments N$793 000 for school construction

State-owned construction company August 26 Construction has denied owing Manani Investments CC nearly N$800 000, alleging in High Court papers that the subcontractor left behind incomplete and defective classroom projects that have since cost more than N$2 million to rectify.

The allegations are contained in a plea filed in response to a lawsuit instituted by Manani Investments in February this year. The subcontractor is seeking payment of N$793 251.50 for work carried out at Nafidi Project School, Olivia Nakale Primary School and Omuuva Mutilifa Primary School in the Ohangwena Region.

In its particulars of claim, Manani Investments says it was appointed in April 2023 to construct classrooms and ablution facilities under contracts totalling N$5.56 million. The company maintains that it completed the projects, handed the facilities over in January 2024 and became entitled to payment of the outstanding balance, including retention money, after the one-year retention period expired.

August 26, however, disputes those claims.

In its plea, the state-owned company denies that the parties concluded the partly oral and partly written agreement described by Manani Investments, arguing instead that their relationship was governed solely by letters of appointment issued in April 2023.

Standards

According to the plea, August 26 further argues that Manani Investments failed to complete various aspects of the work and that portions of the construction were defective and did not meet the required standard.

The company says it repeatedly informed the subcontractor, including via email, that defects and incomplete work required rectification, but alleges that Manani Investments failed to carry out the necessary repairs while continuing to demand payment.

Among the alleged defects identified in the plea are termite infestation affecting certain structures, loose and defective door handles, and paintwork that allegedly began peeling before the buildings were occupied.

August 26 also disputes Manani Investments' claim to retention money, arguing that retention payments become due only after practical completion has been achieved and the defects liability period has expired.

The company maintains that neither of those conditions was met because, according to its plea, the projects were never completed to the required standard.

August 26 further alleges that it has incurred costs of N$2 004 059.86 to assess, rectify and complete the allegedly defective and incomplete works, an amount it says exceeds the N$793 251.50 being claimed by Manani Investments.

Manani Investments, however, disputes those allegations. In its particulars of claim, the company maintains that no remedial work was requested during the one-year retention period and that August 26 breached the agreement by failing to settle the outstanding invoices despite formal demands for payment.

The dispute has since been referred to court-connected mediation by High Court Judge Shafimana Ueitele in an effort to resolve the matter before trial.

The parties are scheduled to appear before accredited mediator Richard Frankle on 29 July, with the matter returning to court on 8 September for a status hearing on the outcome of the mediation.

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