Agribank sues Parreira for N$50m
The loan, to be paid off in 15 years, was offered at 8% interest, and the first repayment was expected 12 months after it was disbursed.
27 July 2020 | Agriculture
Kenya Kambowe
RUNDU
Agribank is suing well-known farmer and businessman Tulio van der Merwe Parreira for about N$50 million after he defaulted on a loan granted in 2015.
Parreira (61) runs businesses in Rundu and has leased the Musese green scheme in Kavango West for the past 25 years.
Earlier this year, Agribank approached the Windhoek High Court after Killarney Pty Ltd, which is solely owned by Parreira, failed to honour a loan bond, which resulted in certificate of indebtedness being issued against him.
Court documents show that Killarney was granted an Agribank loan of N$37 591 600 in September 2015 - N$37 million to take over debts from Standard Bank, N$560 000 for bond fees and N$31 600 for evaluation fees.
The loan, to be paid off in 15 years, was offered at 8% interest, and the first repayment was expected 12 months after it was disbursed.
Contract breached
Killarney used Erf 1324 in Rundu's Extension 4 as a guarantee, which saw a surety bond registered at the deeds' office in Windhoek on 29 September 2015.
According to court documents filed by Agribank's legal team, Killarney breached the loan agreement by failing to pay the instalment from 31 March 2017.
On 12 December 2019, Agribank legal representative Charles Visser from ENSafrica wrote a letter to Killarney, informing the company that its account was in arrears to the tune of N$9 672 114.66.
Killarney was expected to pay within 14 days or face court action.
Certificate of indebtedness
On 8 January, Agribank's chief financial officer Louis du Toit issued the certificate of indebtedness against Killarney.
This was then followed by the High Court civil claim to compel Killarney to pay back the N$49 149 885 it owed the bank.
On 17 February, through Barend van der Merwe of Van der Merwe-Greeff-Andima Incorporated, Killarney filed a notice to oppose the action.
Objection
According to Parreira's signed affidavit dated 4 July, the application for a summary judgment should be refused because he has not had enough time to verify the amounts involved in Agribank's claim.
He further argued that Du Toit has not made a statement under oath, and that his signature doesn't feature on the certificate.
“For all these reasons, summary judgment should be refused and the defendants should be granted leave to defend so that an amount and debate of the exact amount outstanding can be undertaken.”
On 8 July, High Court Judge Marlene Tommasi remanded the matter to 3 September.
Bankruptcy
Last October, Namibian Sun reported that Parreira's income had been affected by an invasion of elephants at the Musese green scheme as well as a fall armyworm attack on his maize crops in 2017.
At the time, the businessman said he had incurred financial losses of about N$12 million due to elephants destroying his crops over the years, while a fall armyworm infestation caused a loss of N$40 million.
These cumulative disasters were driving him ever closer to bankruptcy, he said.
RUNDU
Agribank is suing well-known farmer and businessman Tulio van der Merwe Parreira for about N$50 million after he defaulted on a loan granted in 2015.
Parreira (61) runs businesses in Rundu and has leased the Musese green scheme in Kavango West for the past 25 years.
Earlier this year, Agribank approached the Windhoek High Court after Killarney Pty Ltd, which is solely owned by Parreira, failed to honour a loan bond, which resulted in certificate of indebtedness being issued against him.
Court documents show that Killarney was granted an Agribank loan of N$37 591 600 in September 2015 - N$37 million to take over debts from Standard Bank, N$560 000 for bond fees and N$31 600 for evaluation fees.
The loan, to be paid off in 15 years, was offered at 8% interest, and the first repayment was expected 12 months after it was disbursed.
Contract breached
Killarney used Erf 1324 in Rundu's Extension 4 as a guarantee, which saw a surety bond registered at the deeds' office in Windhoek on 29 September 2015.
According to court documents filed by Agribank's legal team, Killarney breached the loan agreement by failing to pay the instalment from 31 March 2017.
On 12 December 2019, Agribank legal representative Charles Visser from ENSafrica wrote a letter to Killarney, informing the company that its account was in arrears to the tune of N$9 672 114.66.
Killarney was expected to pay within 14 days or face court action.
Certificate of indebtedness
On 8 January, Agribank's chief financial officer Louis du Toit issued the certificate of indebtedness against Killarney.
This was then followed by the High Court civil claim to compel Killarney to pay back the N$49 149 885 it owed the bank.
On 17 February, through Barend van der Merwe of Van der Merwe-Greeff-Andima Incorporated, Killarney filed a notice to oppose the action.
Objection
According to Parreira's signed affidavit dated 4 July, the application for a summary judgment should be refused because he has not had enough time to verify the amounts involved in Agribank's claim.
He further argued that Du Toit has not made a statement under oath, and that his signature doesn't feature on the certificate.
“For all these reasons, summary judgment should be refused and the defendants should be granted leave to defend so that an amount and debate of the exact amount outstanding can be undertaken.”
On 8 July, High Court Judge Marlene Tommasi remanded the matter to 3 September.
Bankruptcy
Last October, Namibian Sun reported that Parreira's income had been affected by an invasion of elephants at the Musese green scheme as well as a fall armyworm attack on his maize crops in 2017.
At the time, the businessman said he had incurred financial losses of about N$12 million due to elephants destroying his crops over the years, while a fall armyworm infestation caused a loss of N$40 million.
These cumulative disasters were driving him ever closer to bankruptcy, he said.
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