Cango Construction fights SME Bank lawsuit
The two liquidators of the now defunct SME Bank say Cango Construction took an overdraft facility and made no payments.
The liquidators of the SME Bank, Dave Bruni and Ian McLaren, are suing Cango Construction, with registered offices in Oshakati and its principal place of business in Ondangwa, for N$4 million.
In their papers before the court, they include businessman Michael Nghulondo, Martin Shikongo, employed by the Ondangwa town council, and businesswoman Rauna Gotlieb as the second, third and fourth defendants.
The liquidators say the construction company, represented by Nghulondo, opened a current account on 29 January 2015, with the usual tenets, including an overdraft. On 30 January 2015, Nghulondo executed a deed of suretyship, binding himself as surety and co-principal debtor.
According to the liquidators, “the amount recoverable from [Nghulondo] is unlimited, plus such further sums or sums for interest or finance charges on that amount, as well as charges and costs as may from time to time and howsoever arising, become due and payable by Cango Construction to the SME Bank”.
In the event of a default by the company, the SME Bank could rightly pursue Nghulondo for remedy. Nghulondo chose erf 2761, Washington Street in Otjomuise Windhoek, as his domicilium citandi et executandi.
Shikongo and Gotlieb signed the same deed of suretyship with the same provisions, both naming erf 2609, Extension 9 in Oluno, Ondangwa as their domicilium citandi et executandi.
On 31 May 2018, the balance of the bank overdraft amounted to N$4 060 484.75, including interest calculated to that date.
“Cango Construction is in breach of its obligations in terms of the agreement by failing to pay the outstanding balance on the due date and being in arrears with such payment as well as interest thereon,” the liquidators said.
Bruni and McLaren are asking for the payment of the overdraft balance along with 15.5% interest per annum and the costs of the lawsuit.
The defendants filed their intention to defend and last Thursday and a case planning conference was held before Judge Hannelie Prinsloo.
She instructed the defendants to file their plea and counterclaim no later than 19 October and both parties were instructed to file their discovery affidavits by 7 December. The matter was postponed to 31 January next year for another case management hearing.
Jacobus van Wyk of JC van Wyk Attorneys appears for Bruni and McLaren, while Ndateelela Shilongo from Sisa Namandje and Co. appears for the four defendants.
The SME Bank was placed under provisional liquidation by the High Court on 29 November last year, following an application by the Bank of Namibia.
YANNA SMITH
In their papers before the court, they include businessman Michael Nghulondo, Martin Shikongo, employed by the Ondangwa town council, and businesswoman Rauna Gotlieb as the second, third and fourth defendants.
The liquidators say the construction company, represented by Nghulondo, opened a current account on 29 January 2015, with the usual tenets, including an overdraft. On 30 January 2015, Nghulondo executed a deed of suretyship, binding himself as surety and co-principal debtor.
According to the liquidators, “the amount recoverable from [Nghulondo] is unlimited, plus such further sums or sums for interest or finance charges on that amount, as well as charges and costs as may from time to time and howsoever arising, become due and payable by Cango Construction to the SME Bank”.
In the event of a default by the company, the SME Bank could rightly pursue Nghulondo for remedy. Nghulondo chose erf 2761, Washington Street in Otjomuise Windhoek, as his domicilium citandi et executandi.
Shikongo and Gotlieb signed the same deed of suretyship with the same provisions, both naming erf 2609, Extension 9 in Oluno, Ondangwa as their domicilium citandi et executandi.
On 31 May 2018, the balance of the bank overdraft amounted to N$4 060 484.75, including interest calculated to that date.
“Cango Construction is in breach of its obligations in terms of the agreement by failing to pay the outstanding balance on the due date and being in arrears with such payment as well as interest thereon,” the liquidators said.
Bruni and McLaren are asking for the payment of the overdraft balance along with 15.5% interest per annum and the costs of the lawsuit.
The defendants filed their intention to defend and last Thursday and a case planning conference was held before Judge Hannelie Prinsloo.
She instructed the defendants to file their plea and counterclaim no later than 19 October and both parties were instructed to file their discovery affidavits by 7 December. The matter was postponed to 31 January next year for another case management hearing.
Jacobus van Wyk of JC van Wyk Attorneys appears for Bruni and McLaren, while Ndateelela Shilongo from Sisa Namandje and Co. appears for the four defendants.
The SME Bank was placed under provisional liquidation by the High Court on 29 November last year, following an application by the Bank of Namibia.
YANNA SMITH
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