TransNamib liquidation bid heads to court
Govt says company is too crucial to economy
Lawyer Sisa Namandje confirmed that he has been instructed by his client to proceed with an application for liquidation after the rail operator failed to respond to demands for payment.
Jemima Beukes
WINDHOEK
Lawyer Sisa Namandje yesterday confirmed he has been instructed by his client, Belgian company Challenge Air, to approach the High Court with a bid to liquidate TransNamib, which allegedly failed to respond to a 15-day deadline on how it will pay back the European company’s debt.
Challenge Air already succeeded in liquidating Air Namibia last year, and is now seeking similar action against the national rail operator.
Debt-stricken TransNamib had recently said it owes Challenge Air neither money, nor any answers.
The Belgians will approach the courts seeking an order compelling the parastatal to pay over N$160 million it said it is owed in debts by TransNamib.
Challenge Air last month issued a letter of demand to TransNamib seeking payment of N$161 million for the lease of an aircraft by Air Namibia, at the time a subsidiary of the rail operator.
Its lawyer Sisa Namandje confirmed to Namibian Sun yesterday that the rail operator did not respond to the demand letter, hence “court papers are being prepared”.
“It is enough to inform that TransNamib, having failed to heed our client’s demand, we have received instructions to proceed to the High Court.
“TransNamib may seek to temporarily delay payment due to our client but soon it will be made to pay as ordered by the arbitrator in Europe.”
Challenge Air has been a thorn in the flesh of Namibian parastatals, having already played a major role in the demise of the country’s national airline.
Over 600 people lost their jobs when the airline was liquidated in 2021 after it failed to conquer a mountain of debt to creditors, which included the Belgian outfit.
Don’t worry
Despite the looming legal proceedings which threaten to derail TransNamib’s operations, acting public enterprise minister Iipumbu Shiimi has allayed public fears that the rail entity will go the same route as Air Namibia, with the railway company remaining a strategic entity in the country’s logistics hub aspirations.
Shiimi recently told Parliament that government deems TransNamib the appropriate vehicle for Namibia’s logistics hub aspirations, connecting the broader Southern African Development Community (SADC) region.
He added that the state will do everything in its power to strengthen the railway operator to ensure it delivers on its mandate in a cost-effective manner.
“Over the past few years specifically, the government has provided strong governance and oversight - as evidenced in the appointment of competent boards of directors and [the approval of] the Integrated Strategic Business Plan (ISBP) of TransNamib in 2019, which was the first ISBP approved by the ministry.
“Government has provided budget support of about N$90 million to TransNamib in the past two years to enable the entity to, among others, improve its fleet of locomotives and increase operational efficiencies,” Shiimi said.
He added that the state has also made a “capital injection of N$150 million into TransNamib to acquire 100% shareholding in the Swakopmund Hotel and Entertainment Centre and written off N$410 million of debt owed by TransNamib to improve the company’s balance sheet”.
WINDHOEK
Lawyer Sisa Namandje yesterday confirmed he has been instructed by his client, Belgian company Challenge Air, to approach the High Court with a bid to liquidate TransNamib, which allegedly failed to respond to a 15-day deadline on how it will pay back the European company’s debt.
Challenge Air already succeeded in liquidating Air Namibia last year, and is now seeking similar action against the national rail operator.
Debt-stricken TransNamib had recently said it owes Challenge Air neither money, nor any answers.
The Belgians will approach the courts seeking an order compelling the parastatal to pay over N$160 million it said it is owed in debts by TransNamib.
Challenge Air last month issued a letter of demand to TransNamib seeking payment of N$161 million for the lease of an aircraft by Air Namibia, at the time a subsidiary of the rail operator.
Its lawyer Sisa Namandje confirmed to Namibian Sun yesterday that the rail operator did not respond to the demand letter, hence “court papers are being prepared”.
“It is enough to inform that TransNamib, having failed to heed our client’s demand, we have received instructions to proceed to the High Court.
“TransNamib may seek to temporarily delay payment due to our client but soon it will be made to pay as ordered by the arbitrator in Europe.”
Challenge Air has been a thorn in the flesh of Namibian parastatals, having already played a major role in the demise of the country’s national airline.
Over 600 people lost their jobs when the airline was liquidated in 2021 after it failed to conquer a mountain of debt to creditors, which included the Belgian outfit.
Don’t worry
Despite the looming legal proceedings which threaten to derail TransNamib’s operations, acting public enterprise minister Iipumbu Shiimi has allayed public fears that the rail entity will go the same route as Air Namibia, with the railway company remaining a strategic entity in the country’s logistics hub aspirations.
Shiimi recently told Parliament that government deems TransNamib the appropriate vehicle for Namibia’s logistics hub aspirations, connecting the broader Southern African Development Community (SADC) region.
He added that the state will do everything in its power to strengthen the railway operator to ensure it delivers on its mandate in a cost-effective manner.
“Over the past few years specifically, the government has provided strong governance and oversight - as evidenced in the appointment of competent boards of directors and [the approval of] the Integrated Strategic Business Plan (ISBP) of TransNamib in 2019, which was the first ISBP approved by the ministry.
“Government has provided budget support of about N$90 million to TransNamib in the past two years to enable the entity to, among others, improve its fleet of locomotives and increase operational efficiencies,” Shiimi said.
He added that the state has also made a “capital injection of N$150 million into TransNamib to acquire 100% shareholding in the Swakopmund Hotel and Entertainment Centre and written off N$410 million of debt owed by TransNamib to improve the company’s balance sheet”.
Comments
Namibian Sun
No comments have been left on this article