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.

Similar News

 

Meatco works towards inclusivity

3 days ago - 23 September 2020 | Agriculture

STAFF REPORTERWINDHOEKMeatco hosted a stakeholder engagement meeting with mainly weekend farmers and members of the Namibia Emerging Commercial Farmers Union (NECFU) last week.These farmers are...

Meat industry players meet

3 days ago - 23 September 2020 | Agriculture

STAFF REPORTERWINDHOEKThe Meatco board last week paid a courtesy visit to the Meat Board of Namibia to discuss how to address crucial matters hampering the...

Keep your chickens healthy

1 week ago - 16 September 2020 | Agriculture

ELLANIE SMITWINDHOEKPoultry farmers are advised to prevent the spread of diseases on their farms in order to ensure a sustainable income stream.This is according to...

Know your summer vegetables

1 week ago - 16 September 2020 | Agriculture

ELLANIE SMIT WINDHOEKSummer is approaching fast, and this is an opportune time for farmers to get ready to cultivate vegetables. Agribank's technical advisor for...

Ministry shuns shipping plan

1 week ago - 15 September 2020 | Agriculture

ELLANIE SMIT WINDHOEKThe agriculture ministry has distanced itself from a proposed plan that would have seen thousands of livestock being shipped to the Middle East...

Agribank rolls out production stimulus loans

1 week ago - 14 September 2020 | Agriculture

ELLANIE SMIT WINDHOEKClients will soon be able to apply for production loans at Agribank as part of its coronavirus relief stimulus package. It announced the...

Storm erupts over plan to ship live animals

2 weeks ago - 09 September 2020 | Agriculture

JANA-MARI SMITHWINDHOEK Nearly 1 000 people have signed a petition demanding a stop to a proposed plan that will see about 125 000...

Meat sector wants to increase contribution to GDP

2 weeks ago - 09 September 2020 | Agriculture

STAFF REPORTERWINDHOEKThe Meat Board of Namibia delivered a presentation at the first virtual agricultural conference in Namibia last week dealing with the environment, challenges and...

Agriculture 'paradigm shift' needed

3 weeks ago - 04 September 2020 | Agriculture

ELLANIE SMITWINDHOEKNamibia must ensure it is shockproof against the coronavirus pandemic, global warming, as well as other forces that can negatively affect the performance of...

Agri sector 'must be modernised'

3 weeks ago - 03 September 2020 | Agriculture

ELLANIE SMITWINDHOEKAgriculture must be urgently transformed and modernised so that it can serve as the bedrock of the country's economic recovery efforts.Agriculture minister Calle Schlettwein...

Latest News

Government wage index increases in...

1 day - 25 September 2020 | Economics

PHILLEPUS UUSIKU The government wage index stood at 133.0 basis points during the second quarter of 2020, an increase of 0.9 percent, compared to an...

No English cucumbers will be...

1 day - 25 September 2020 | Economics

ELLANIE SMITNo English cucumbers will be imported into Namibia until further notice. This was announced to horticulture producers earlier this week by Namibia Agronomic Board...

Millennials thrive in learning organisations

1 day - 25 September 2020 | People

Chaze NalisaMillennials, those born between 1981 and 1996, are dynamic, with a wealth of potential to contribute to the transition, sustainability and growth of an...

Attitude is everything

1 day - 25 September 2020 | People

Mariselle StofbergWith his people relationships and excellent communication skills, Chris Matthee understands the importance of listening and communicating clearly and with the appropriate level of...

Attitude is everything

1 day - 25 September 2020 | Banking

Mariselle StofbergWith his people relationships and excellent communication skills, Chris Matthee understands the importance of listening and communicating clearly and with the appropriate level of...

Without a trace

1 day - 25 September 2020 | Crime

ELLANIE SMIT WINDHOEKAs the family of Shannon Darlikie Wasserfall battles to deal with the trauma of her disappearance - without a trace - nearly...

DBN seeks interim replacement for...

1 day - 25 September 2020 | Business

OGONE TLHAGEWINDHOEKThe Development Bank of Namibia (DBN) will find a temporary replacement for its senior manager for corporate communications Jerome Mutumba until his return from...

Economy loses nearly N$6bn in...

1 day - 25 September 2020 | Economics

Jo-Maré Duddy WINDHOEKAbout N$5.7 billion less flowed through the economy in the second quarter due to the lockdown and related Covid-19 measures...

DBN Innovation Award winner makes...

1 day - 25 September 2020 | Economics

PHILLEPUS UUSIKUWinner of the Development Bank of Namibia (DBN) 2019 Innovation Award, Pulsar Electronics, is making strides with a DBN enterprise development and support package...

Load More