Medical companies reach settlement

Two medical supply companies signed a settlement agreement last Friday after a quick court visit due to alleged non-payment of around N$7.8 million.Earlier this month, KML Medical Supplies filed an urgent application at the Windhoek High Court against Mozart Medical Supplies after KML allegedly supplied products worth almost N$12 million to Mozart, but apparently was not paid in full.Mozart had a contractual relationship with the health ministry.According to KML, Mozart apparently did not have the ability to source clinical products from abroad and the company had to rely on suppliers such as KML to fulfill its contractual obligations with the ministry.Apols Gariseb, who claims to be a member of KML, said in a statement that they entered into an agreement that KML would supply the products to Mozart and Mozart had to pay KML as soon as it received the money from the ministry."The applicant [KML] brought clinical products into the country from abroad at its own expense and delivered them to the first respondent [Mozart] to enable the company to fulfill its contractual obligations to the ministry," the statement read.According to Gariseb, Mozart paid part of the money, but not the full amount, and he was reportedly aware that the ministry had settled its dues with Mozart.However, Mozart board member Indileni Helena Shoopala claimed in an answering statement that neither she nor any of Mozart&#039;s members ever entered into an agreement with KML or Gariseb."Gariseb is not a member of the applicant [KML] as he claims. I understand that the only member of the company is one Zhu Mali and neither I nor any of Mozart&#039;s members have ever met Mali," she said.FortundaMeanwhile, Shoopala claimed that in May 2019, Mozart signed a product sales and supply agreement with a company named Fortunda, represented by Dr Xiangyu Ying.“Fortuna delivered products to Mozart in September 2023 and Mozart had to pay Fortunda, but it is embroiled in a dispute over payment and income tax, as well as a pending investigation into alleged tax evasion by the Namibia Revenue Agency (NamRA),” she explained."NamRA has already been investigating Mozart and Fortunda - Xiangyu&#039;s company - for tax evasion and money laundering since August 2023 due to transactions entered into by these two companies."The agreement between Mozart and Fortunda was that tax and VAT obligations would be paid before suppliers were paid," she claimed.Arguments were, however, abandoned after a settlement agreement was signed on Friday and KML agreed to withdraw its court application against Mozart.SettlementAccording to the settlement agreement, which was made an order of the court, Mozart agreed to pay N$7.795 million to KML in three installments.The first amount of N$3.39 million had to be paid yesterday, while the second payment - N$2.202 million - is due by 10 February. The last payment is due by 30 March.– kristien@republikein.com.na

Medical companies reach settlement

Comments

Namibian Sun 2025-05-09

Please login to leave a comment

Medical companies reach settlement

Comments

Namibian Sun 2025-05-09

Please login to leave a comment

Login