DBN claims N$3m from medical bigwigs
A loan secured in 2012 was restructured twice and more than the original loan amount is still outstanding.
20 June 2019 | Justice
The other defendants listed in the matter are acting health director for Oshikoto, Dr Helen Nkandi-Shiimi, health minister Kalumbi Shangula, Dr Taurayi Marange and Dr Tatenda Mawire.
Dr Nkandi-Shiimi holds a 40% stake in the centre while the remaining respondents each hold 20%.
The hearing was held to ascertain the progress made on settlement negotiations.
According to the bank's particulars of claim, a N$3 million loan was taken out by the centre in June 2012, payable over 96 months of which 10 months were granted as a grace period. Interest at prime rate would be applied.
Nkandi-Shiimi offered N$360 000 for surety while Shangula provided “unlimited suretyship for the liabilities” of the centre. Marange ceded his N$3 million life cover and Mawire offered N$540 000 in terms of erf 2021 in Klein Windhoek.
Should the centre not observe the terms or suffer a default judgment or be placed under judicial management or liquidated, the agreement stipulates that the arrears be restructured at a fee of the total and that legal action can be taken.
During March 2017, the centre applied for a restructuring of the loan. This was approved and the loan, 48 months old, had another 47-month repayment period added. Interest of prime plus 1% would be levied.
A second restructuring application was made three months later by Nkandi-Shiimi, which was approved. The loan would now be for a period of 96 months at prime plus 1% interest. The monthly instalment was fixed at N$48 000.
The bank says that at 30 September last year, payments had not been made as agreed and the total outstanding debt stood at N$3 168 385.23, including interest of 11.5%.
The bank asked for an order of execution in sale of erf 2021 in Klein Windhoek and since sureties had been granted by the other shareholders, that they jointly or severally, be held responsible for the settlement of the loan. The bank also asked for costs and 11.5% interest.
The centre and its principles filed notices of intention to defend, but the matter will now be settled.
Francois Bangamwabo of FB Law Chambers appears on behalf the centre and the four respondents, while Patrick Kauta of Weder, Kauta and Hoveka appears for DBN.