Multimillion-dollar mask deal goes sour
A tobacco company linked to Swapo’s Oshikoto regional coordinator wants its more than N$6 million back after being supplied with fake masks.
JANA-MARI SMITH
WINDHOEK
A Chinese-owned tobacco company is suing to reclaim more than N$6 million it says was lost when a deal to buy 440 000 face masks last February went sour.
Namibia Oriental Tobacco CC in November sued Mickir Supplies CC in the Windhoek High Court, demanding payment of N$6 551 760 - plus interest and the cancellation of the mask deal.
The tobacco company is majority Chinese owned, with Swapo’s coordinator for the Oshikoto Region, Armas Amukwiyu, a co-owner.
Earlier this year, it was reported in national media that the company’s hope to kickstart a multibillion-dollar tobacco plantation in Zambezi was dead in the water after it refused to agree with conditions set by Cabinet.
Mickir is defending the matter, claiming that it is suing a South African company which sold it 30 000 fake face masks, for which it paid more than N$4 million last June.
It said the purchase of the masks was part of an agreement with Namibia Oriental and that it is not in breach of the contract as both parties carried equal risk in the business venture.
Papers submitted to court by Namibia Oriental state that on 10 February, Mickir, represented by Trevor Petersen, agreed to procure 440 000 Ansell Sandel N95 face masks. Namibia Oriental was represented by Lou Ming.
Mask off
The court documents state that the agreement, which was partly written and partly oral, stipulated that Mickir would deliver 420 000 masks at a cost of close to N$9 million. A few days later, Ming and Petersen concluded another oral deal, in which they agreed that 20 000 more masks should be procured for an additional N$423 2000.
The masks would be delivered before 24 February to an address in China, and the tobacco firm would pay a N$500 000 security deposit. It also advanced just over N$6 million to Mickir to help with the order.
Namibia Oriental now claims that Mickir is in breach of the contract after it failed to “deliver the 440 000 masks on or before the 24 February or at all”.
It also claims that by time the lawsuit was filed on 24 November 2020, no masks had been delivered.
Deal falls flat
In its plea, filed in February, Mickir admitted it was paid N$6.5 million, but argued that the first order in South Africa fell flat after the company informed it that they could no longer supply the masks. Although the company had been paid, they fully refunded Mickir.
Mickir said Namibia Oriental was made aware of the situation, and in response said it did not want the money back.
Instead, Namibia Oriental asked that “due to the high demand for masks in Namibia, [Mickir] should procure alternative masks from an alternative supplier and assist the plaintiff in selling the masks in Namibia”.
Moreover, Mickir said a new deal was made, and that the parties realised that mask prices had shot up steeply between February and May.
This deal, finalised in June 2020 according to Mickir, and also made orally, stipulated that Namibia Oriental would contribute capital for the procurement of masks. Mickir would order the masks and, once delivered, would attend to the sale of the masks to the public.
Fake masks
“The proceeds generated from the sales, after the deduction of all costs incurred in respect of the procurement of the masks, would be shared between the parties 50/50.”
Mickir proceeded to order 70 000 masks at a price of just over N$4 million from another South African company, Mining World Investments.
Mickir claimed Mining World, however, only delivered 29 360 masks at the end of last August.
Still, Mickir said it paid over N$600 000 to Namibia Oriental at this stage.
Then, in January, Mickir realised the masks were “counterfeit masks, which resulted in [us] being unable to sell the masks to the public”.
Mickir has now sued Mining World Investments in South Africa, and argued that considering the new deal, and the shared risks, it did not breach the initial agreement.
Yesterday, the case was postponed to 10 May for a case management conference by High Court judge Herman Oosthuizen.
Mickir is represented in court by Francois Erasmus, while Astrid Feris of Sisa Namandje & Co is acting on behalf of Namibia Oriental.
WINDHOEK
A Chinese-owned tobacco company is suing to reclaim more than N$6 million it says was lost when a deal to buy 440 000 face masks last February went sour.
Namibia Oriental Tobacco CC in November sued Mickir Supplies CC in the Windhoek High Court, demanding payment of N$6 551 760 - plus interest and the cancellation of the mask deal.
The tobacco company is majority Chinese owned, with Swapo’s coordinator for the Oshikoto Region, Armas Amukwiyu, a co-owner.
Earlier this year, it was reported in national media that the company’s hope to kickstart a multibillion-dollar tobacco plantation in Zambezi was dead in the water after it refused to agree with conditions set by Cabinet.
Mickir is defending the matter, claiming that it is suing a South African company which sold it 30 000 fake face masks, for which it paid more than N$4 million last June.
It said the purchase of the masks was part of an agreement with Namibia Oriental and that it is not in breach of the contract as both parties carried equal risk in the business venture.
Papers submitted to court by Namibia Oriental state that on 10 February, Mickir, represented by Trevor Petersen, agreed to procure 440 000 Ansell Sandel N95 face masks. Namibia Oriental was represented by Lou Ming.
Mask off
The court documents state that the agreement, which was partly written and partly oral, stipulated that Mickir would deliver 420 000 masks at a cost of close to N$9 million. A few days later, Ming and Petersen concluded another oral deal, in which they agreed that 20 000 more masks should be procured for an additional N$423 2000.
The masks would be delivered before 24 February to an address in China, and the tobacco firm would pay a N$500 000 security deposit. It also advanced just over N$6 million to Mickir to help with the order.
Namibia Oriental now claims that Mickir is in breach of the contract after it failed to “deliver the 440 000 masks on or before the 24 February or at all”.
It also claims that by time the lawsuit was filed on 24 November 2020, no masks had been delivered.
Deal falls flat
In its plea, filed in February, Mickir admitted it was paid N$6.5 million, but argued that the first order in South Africa fell flat after the company informed it that they could no longer supply the masks. Although the company had been paid, they fully refunded Mickir.
Mickir said Namibia Oriental was made aware of the situation, and in response said it did not want the money back.
Instead, Namibia Oriental asked that “due to the high demand for masks in Namibia, [Mickir] should procure alternative masks from an alternative supplier and assist the plaintiff in selling the masks in Namibia”.
Moreover, Mickir said a new deal was made, and that the parties realised that mask prices had shot up steeply between February and May.
This deal, finalised in June 2020 according to Mickir, and also made orally, stipulated that Namibia Oriental would contribute capital for the procurement of masks. Mickir would order the masks and, once delivered, would attend to the sale of the masks to the public.
Fake masks
“The proceeds generated from the sales, after the deduction of all costs incurred in respect of the procurement of the masks, would be shared between the parties 50/50.”
Mickir proceeded to order 70 000 masks at a price of just over N$4 million from another South African company, Mining World Investments.
Mickir claimed Mining World, however, only delivered 29 360 masks at the end of last August.
Still, Mickir said it paid over N$600 000 to Namibia Oriental at this stage.
Then, in January, Mickir realised the masks were “counterfeit masks, which resulted in [us] being unable to sell the masks to the public”.
Mickir has now sued Mining World Investments in South Africa, and argued that considering the new deal, and the shared risks, it did not breach the initial agreement.
Yesterday, the case was postponed to 10 May for a case management conference by High Court judge Herman Oosthuizen.
Mickir is represented in court by Francois Erasmus, while Astrid Feris of Sisa Namandje & Co is acting on behalf of Namibia Oriental.
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