Bank’s ex-board chairperson battles N$20m debt
Rita Kakelo
WINDHOEK
Former Agribank board chairperson and northern-based businessman Michael Iyambo is fighting to keep his farm after the bank dragged him and his companies to court in 2021, demanding repayment of more than N$20 million in loans.The long-running case returned to court this week for interlocutory proceedings.
The loans were partly secured by a 3 241-hectare farm in the Oshikoto region, which Agribank is now seeking to have declared executable through legal action in the Windhoek High Court to recover its funds.
In addition, Agribank is seeking a summary judgment in an attempt to recover the debt quickly without the need for a full trial, arguing that Iyambo and the other defendants have no valid defence and are merely attempting to delay payment.
According to the amended particulars of claim, the N$20.188 million debt is broken down across five loans as follows: N$1.8 million, N$1.872 million, N$965 000, N$3.2 million and N$10.3 million.
Initial demands
Court records also show that Agribank initially approached the court in 2022, demanding N$55.8 million from Iyambo and his businesses.
At the time, Agribank sought to have the 3 241-hectare Concordia farm declared executable, along with movable assets such as tractors, irrigation equipment and a solar system. The claim has since been revised to just over N$20 million in the current amended particulars of claim.
“All loans bear variable compound interest ranging from 8% to 8.25% per annum, plus an additional 2% rate determined by Agribank’s board.
Repayment periods range from 10 to 15 years, with the first year requiring interest-only payments and capital repayments commencing in the second year,” the bank’s court documents state.
Despite these arrangements, the bank claims that by 25 June 2020, Iyambo and the linked companies were in breach, with total outstanding debt reaching N$20 million, of which N$2.5 million was already in arrears.
To partially secure the loans, a general notarial bond was reportedly registered over movable property, including tractors, irrigation equipment and a solar system, while a surety mortgage bond was registered over the Concordia farm for additional security.
Dispute settled, defendant says
In 2020, Iyambo resigned from Agribank following allegations of a conflict of interest, as he simultaneously held loans with the bank while serving as board chair. Former finance minister Ipumbu Shiimi had indicated that his dual role placed him in a difficult position.
In recent court papers, Iyambo argues he does not owe the full amount claimed by Agribank.
He says the loan was restructured in December 2024, meaning the original terms were adjusted – such as extending the grace period and changing the down payment – effectively settling the dispute.
Iyambo also maintains that the bank, as a state-owned entity, is bound by its own board resolution and cannot pursue the claim unless a court overturns it. He further points to a Cabinet directive that places a moratorium on the sale of commercial farms, which he says prevents the bank from proceeding with litigation.
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WINDHOEK
Former Agribank board chairperson and northern-based businessman Michael Iyambo is fighting to keep his farm after the bank dragged him and his companies to court in 2021, demanding repayment of more than N$20 million in loans.The long-running case returned to court this week for interlocutory proceedings.
The loans were partly secured by a 3 241-hectare farm in the Oshikoto region, which Agribank is now seeking to have declared executable through legal action in the Windhoek High Court to recover its funds.
In addition, Agribank is seeking a summary judgment in an attempt to recover the debt quickly without the need for a full trial, arguing that Iyambo and the other defendants have no valid defence and are merely attempting to delay payment.
According to the amended particulars of claim, the N$20.188 million debt is broken down across five loans as follows: N$1.8 million, N$1.872 million, N$965 000, N$3.2 million and N$10.3 million.
Initial demands
Court records also show that Agribank initially approached the court in 2022, demanding N$55.8 million from Iyambo and his businesses.
At the time, Agribank sought to have the 3 241-hectare Concordia farm declared executable, along with movable assets such as tractors, irrigation equipment and a solar system. The claim has since been revised to just over N$20 million in the current amended particulars of claim.
“All loans bear variable compound interest ranging from 8% to 8.25% per annum, plus an additional 2% rate determined by Agribank’s board.
Repayment periods range from 10 to 15 years, with the first year requiring interest-only payments and capital repayments commencing in the second year,” the bank’s court documents state.
Despite these arrangements, the bank claims that by 25 June 2020, Iyambo and the linked companies were in breach, with total outstanding debt reaching N$20 million, of which N$2.5 million was already in arrears.
To partially secure the loans, a general notarial bond was reportedly registered over movable property, including tractors, irrigation equipment and a solar system, while a surety mortgage bond was registered over the Concordia farm for additional security.
Dispute settled, defendant says
In 2020, Iyambo resigned from Agribank following allegations of a conflict of interest, as he simultaneously held loans with the bank while serving as board chair. Former finance minister Ipumbu Shiimi had indicated that his dual role placed him in a difficult position.
In recent court papers, Iyambo argues he does not owe the full amount claimed by Agribank.
He says the loan was restructured in December 2024, meaning the original terms were adjusted – such as extending the grace period and changing the down payment – effectively settling the dispute.
Iyambo also maintains that the bank, as a state-owned entity, is bound by its own board resolution and cannot pursue the claim unless a court overturns it. He further points to a Cabinet directive that places a moratorium on the sale of commercial farms, which he says prevents the bank from proceeding with litigation.
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