NAC faces N$23m lawsuit
A consulting engineering firm has approached the High Court in a bid to compel the Namibia Airports Company to settle an outstanding bill totalling over N$23 million for work done.
The controversial Ondangwa and Hosea Kutako airport upgrades have made a turn in the High Court, where consulting engineering firm Aurecon Namibia is suing the Namibia Airports Company (NAC) for failing to cough up over N$23 million it is allegedly owed.
The lawsuit relates to consulting services provided by Aurecon in relation to phase zero and one of the northern airport upgrades, for which the firm says it is owed N$3 194 336.52 in respect of value-added tax (VAT) for services rendered during 2015 and 2016. In the second claim, Aurecon wants the NAC to pay N$227 283.99 for additional consulting services on phase zero and one, which included meetings with the Oshana governor and Ondangwa mayor.
It also wants payments to the tune of N$250 000 for determining the pavement classification number (PCN) calculation for the Hosea Kutako International Airport. In its third claim, the engineering firm alleged it provided design work to the value of N$8 517 576.04 including VAT, and supervisory services, which cost N$10 951 169.21 for phase two and three of the Ondangwa facility. Aurecon was contracted by the NAC to provide consulting services for the detailed design, site supervision and contract administration of the Ondangwa Airport pavement rehabilitation and upgrade. The application was yesterday scheduled before Judge Herman Oosthuizen for an interlocutory hearing. Aurecon, in their particulars of claim, alleged they entered into a written “contract for consulting services” with the NAC, which was represented by its former chief executive Tamer El-Kallawi. The NAC allegedly agreed to pay Aurecon for the services rendered, amounting to 10% of the project's construction costs.
The amount accrued interest at the prime lending rate determined by the Bank of Namibia. The firm maintained the NAC is obliged to pay them on the presentation of invoices within 30 days of receipt of each invoice, and that failure to do so would accrue interest at the prime rate.
“The NAC did not obtain an exemption from VAT for this project and consequently VAT is payable on the amount,” Aurecon argued in terms of the over N$3 million being claimed as a VAT payment. The consulting services for the Hosea Kutako airport were reportedly at a special instance and on request by the NAC during March 2015 to October 2016.
“Despite demand, the NAC has neglected to pay Aurecon the said amount, which is due and payable,” the engineering firm alleged. Aurecon further maintained it had complied with all its obligations under the agreement.
According to the firm, the NAC was represented by its former engineering executive, Courage Silombela, who on 7 June 2017 acknowledged in writing the parastatal's indebtedness to Aurecon in the amount of N$20 434 986.95. Aurecon's lawyer wrote to the NAC and recorded the outstanding debts and requested the reasons for the subsequent payment delay. Lot Haifidi, strategic executive for corporate governance at the NAC, said in his sworn statement that Aurecon did not plead properly why it contends it is entitled to the amount of N$197 638.25, excluding VAT. He argued in terms of the contested N$3 194 336.52 in VAT that Aurecon does not have sufficient particulars on whether it indeed paid VAT on the amount invoiced.
He said on the second claim, Silombela did not have the authority to request Aurecon to perform work outside of the scope of the contract entered into between the two parties.
On the alleged services rendered relating to determining the pavement classification number calculation for the Hosea Kutako International Airport, Haifidi stated that Silombela was authorised to procure the services of Aurecon. Although he admitted that the company provided design services for phases two and three, he said with regard to the claim for supervision services, the NAC is at pains to admit a claim while the second phase has not yet commenced. He further said the phase two agreement is the subject of a court review and that Aurecon has not rendered supervision services to the NAC in terms of this phase.
FRED GOEIEMAN
The lawsuit relates to consulting services provided by Aurecon in relation to phase zero and one of the northern airport upgrades, for which the firm says it is owed N$3 194 336.52 in respect of value-added tax (VAT) for services rendered during 2015 and 2016. In the second claim, Aurecon wants the NAC to pay N$227 283.99 for additional consulting services on phase zero and one, which included meetings with the Oshana governor and Ondangwa mayor.
It also wants payments to the tune of N$250 000 for determining the pavement classification number (PCN) calculation for the Hosea Kutako International Airport. In its third claim, the engineering firm alleged it provided design work to the value of N$8 517 576.04 including VAT, and supervisory services, which cost N$10 951 169.21 for phase two and three of the Ondangwa facility. Aurecon was contracted by the NAC to provide consulting services for the detailed design, site supervision and contract administration of the Ondangwa Airport pavement rehabilitation and upgrade. The application was yesterday scheduled before Judge Herman Oosthuizen for an interlocutory hearing. Aurecon, in their particulars of claim, alleged they entered into a written “contract for consulting services” with the NAC, which was represented by its former chief executive Tamer El-Kallawi. The NAC allegedly agreed to pay Aurecon for the services rendered, amounting to 10% of the project's construction costs.
The amount accrued interest at the prime lending rate determined by the Bank of Namibia. The firm maintained the NAC is obliged to pay them on the presentation of invoices within 30 days of receipt of each invoice, and that failure to do so would accrue interest at the prime rate.
“The NAC did not obtain an exemption from VAT for this project and consequently VAT is payable on the amount,” Aurecon argued in terms of the over N$3 million being claimed as a VAT payment. The consulting services for the Hosea Kutako airport were reportedly at a special instance and on request by the NAC during March 2015 to October 2016.
“Despite demand, the NAC has neglected to pay Aurecon the said amount, which is due and payable,” the engineering firm alleged. Aurecon further maintained it had complied with all its obligations under the agreement.
According to the firm, the NAC was represented by its former engineering executive, Courage Silombela, who on 7 June 2017 acknowledged in writing the parastatal's indebtedness to Aurecon in the amount of N$20 434 986.95. Aurecon's lawyer wrote to the NAC and recorded the outstanding debts and requested the reasons for the subsequent payment delay. Lot Haifidi, strategic executive for corporate governance at the NAC, said in his sworn statement that Aurecon did not plead properly why it contends it is entitled to the amount of N$197 638.25, excluding VAT. He argued in terms of the contested N$3 194 336.52 in VAT that Aurecon does not have sufficient particulars on whether it indeed paid VAT on the amount invoiced.
He said on the second claim, Silombela did not have the authority to request Aurecon to perform work outside of the scope of the contract entered into between the two parties.
On the alleged services rendered relating to determining the pavement classification number calculation for the Hosea Kutako International Airport, Haifidi stated that Silombela was authorised to procure the services of Aurecon. Although he admitted that the company provided design services for phases two and three, he said with regard to the claim for supervision services, the NAC is at pains to admit a claim while the second phase has not yet commenced. He further said the phase two agreement is the subject of a court review and that Aurecon has not rendered supervision services to the NAC in terms of this phase.
FRED GOEIEMAN
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