Huang's N$3m claim goes to trial

YANNA SMITH The hearing of businessman Jack Huang's lawsuit against business partners Petrus Nevonga, Christian Itope Jinhao Investment CC started before Judge Shafimana Ueitele in the High Court yesterday.Huang is suing for N$3 million in an amended particulars of claim filed in March this year, in which he alleges making various payments to the three defendants.Nevonga is the long-serving Namibia Public Workers' Union (Napwu) secretary-general, while Itope is a former Ondangwa councillor.Nevonga, Itope and Jinhao filed their intention to defend last year.Huang filed three claims. The first for N$1.6 million, the second for N$1 254 427 and the third for N$180 000, which Huang says is the amount owed by Nevonga and Itope, based on their membership interests in Jinhao. Huang had lent N$300 000 to the company.Huang and the three defendants concluded a deal on 27 October 2015 to establish Jinhao Investment CC, trading as Super Foods, at Sun Square Mall in Ondangwa.Huang said the deal was that he would own 40% of the business, while Nevonga and Itope would hold a combined 60% stake.He said the agreement entailed him paying N$3.2 million as a capital investment into the company, while Itope and Nevonga would invest N$4.8 million.Huang said his partners did not have the full amount and he lent them N$1.6 million.He said after six months from the date of the agreement, Nevonga and Itope would pay back N$800 000 interest free. The remaining N$800 000 loan would begin to accumulate interest from the full payment date of the N$3.2 million and N$1.6 million.Huang included annexures in his particulars, including an agreement that Nevonga and Itope would be jointly and severally liable for the loan, as well as the agreement for the establishment of Jinhao Investment.Interestingly, Huang boasts a Namibian identity number on the agreement.Huang left the close corporation on 2 February last year.According to the annexures filed before the court, the company was in a state of chaos. There were several problems with paying suppliers.“We also experienced issues obtaining income to purchase stock; store income could not cover all the operating expenses.” Namibia Beverages had allegedly also dealt with the supermarket as a “cash client, after [they] failed to meet [their] agreement”.Due to the cash-flow challenges, they were “making the majority of purchases from unregistered vendors, resulting in higher VAT rates”.They also, surprisingly, reported challenges with staff, as there were no salary increases and no pension or medical aid. Furthermore, “they [staff] are working on Sundays and public holidays without pay”.Mention was also made of a frozen Nedbank account and “for now, salaries were paid by Mr Huang. As soon as the bank is unfrozen, Mr Haung will be refunded the amount paid.”In their pleadings, Nevonga and Itope say the money was paid to Jinhao, and not on their behalf. They added it was a “loan” to the company. Moreover, the two told the court they “deny ever admitting to being personally liable to Huang for monies advanced to Jinhao”.After Huang left the company it was agreed he would appoint a proxy to continue as a member in his stead and thus, they say, he continues to hold a membership interest in Jinhao. Huang, in his particulars, told the court that both Nevonga and Itope had been “enriched” by his financial contributions, which the two adamantly deny.“The first and second defendant therefore deny they are indebted to the plaintiff,” the defendants claim in their papers.However, in Annexure B, minutes of a meeting held on 31 August 2017, state it “showed that Mr Huang had over-contributed N$1 254 427.62, resulting in an under-contribution of that same amount for Messrs Nevonga and Itope together”.“This was after N$1.6 million was deducted from Mr Huang's capital contribution and added to Itope/Nevonga's capital contribution. This is treated as a personal loan towards Mr Itope and Mr Nevonga from Mr Huang. This loan is to bear interest at the same percentage as a bank loan. Members to resolve the issue amongst themselves.”Two deny ever having received these monies, adding that the company did not either. They added that should the monies have been paid to the company, they were not indebted to Huang. They asked the court to dismiss Huang's claim with costs. In another matter between the same parties, Huang was granted payment of N$500 000 in March this year after his company, Sun Investments, had sued Jinhao Investment for N$715 000. Huang is represented by Appolos Shimakeleni in both matters and Kadhila Amoomo appears for Nevonga and Itope.YANNA SMITH

Huang's N$3m claim goes to trial

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Namibian Sun 2025-09-18

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Huang's N$3m claim goes to trial

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Namibian Sun 2025-09-18

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