DBN wins court battle to auction Elindi property

The Windhoek High Court has cleared the way for the Development Bank of Namibia (DBN) to auction a Windhoek property linked to Ombili Health Centre and businessmen Malakia Elindi and Peter Elindi after rejecting arguments that the debt could instead be settled through a voluntary sale.

In an order issued last week, the court declared Erf 6128 in Windhoek specially executable, paving the way for the property to be sold in execution to recover money owed to DBN.

The matter stems from a summary judgment application brought by DBN against Ombili Health Centre (Pty) Ltd, the Elindi brothers and Nyambali Medical Centre over an outstanding debt exceeding N$14 million.

The respondents opposed the application, arguing that a forced sale was unnecessary because they had already secured a buyer for the property.

In submissions before the court, lawyers from Sisa Namandje & Co and advocate Karel Gaeb argued that Calabash Investments CC had agreed to purchase the property as a going concern for N$12.5 million.

According to the submissions, the transaction would have been financed by Standard Bank Namibia, with the proceeds paid directly to DBN to reduce the outstanding debt.

The respondents further argued that Rule 108 of the High Court Rules obliges courts to consider alternatives before authorising the execution of immovable property.

They accused DBN of refusing to accommodate the proposed arrangement and abusing Rule 108 proceedings.

“The applicant is determined, perhaps for other motives, to pin the respondents to the cross at all costs,” the respondents argued in court papers.

Despite the objections, the court ruled in favour of DBN and granted punitive legal costs against the fourth respondent on an attorney-and-own-client scale, including costs related to the summary judgment application.

The matter has since been finalised and removed from the court roll.

Loan dispute

Court documents show the dispute originates from two loan facilities granted by DBN to Ombili Health Centre in 2017 — a N$2.6 million term loan and a N$10.7 million property finance facility.

The loans were secured through suretyship agreements signed by the Elindi brothers and Nyambali Medical Centre CC, while the Windhoek property was mortgaged as security.

According to DBN, Ombili later defaulted on repayments, with arrears reaching N$17.7 million by July 2024.

The parties subsequently entered into a settlement agreement under which DBN agreed to write off N$5.5 million, provided Ombili paid N$12.2 million by 31 August 2024.

However, DBN told the court that the respondents failed to honour the agreement.

As of July 2025, the bank claimed the outstanding debt stood at N$14.1 million, excluding interest charged at 20% annually and compounded monthly.