NAC faces N$34m lawsuit
An Egyptian company is suing the Namibia Airports Company (NAC) for N$34 million for an alleged breach of contract in relation to security upgrades at two local airports.
The NAC has indicated it will defend the lawsuit brought by IBB Military Equipment and Accessory Supplies CC, which had initially been awarded a contract for the supply of airport scanners and other security measures at the Hosea Kutako International and Eros airports.
The agreement, which was subsequently cancelled, was concluded in June 2016.
Former NAC CEO Tamer El-Kallawi, who is an Egyptian national, cancelled the maintenance agreement in respect of airport scanners on 31 March 2016.
IBB alleges that the NAC made no attempt to comply with the provisions of the agreement and also did not attempt to attribute any fault or breach of the contract as the reason for the cancellation.
They therefore maintain that the cancellation was of no force. El-Kallawi had earlier explained the need to subject the procurement of the airport scanners' maintenance services to a public tender, which would be open to all interested bidders.
He had conceded that the agreement was not entered into subsequent to a public procurement process.
However, IBB alleged they concluded a renovation agreement with the NAC, which was partially in writing and partially orally concluded and that during the signing ceremony, the NAC was represented by El-Kallawi, while IBB was represented by its representative Muhammed Omar.
In terms of the agreement IBB was mandated to continuously maintain and ensure the functional efficacy of the airport scanners.
The agreed price for redesigning of the layout of the Hosea Kutako and Eros airports with the necessary equipment was N$156 125 620 in total.
IBB now claims to have suffered N$34 million in damages, arising from the breach and repudiation of the renovation agreement, after it had performed specific tasks in accordance with the deal.
These damages were incurred in the period between 29 August and 24 May 2017.
They now want the court to direct the NAC to honour its obligations in terms of the agreement.
The IBB was appointed to design, supply and install check-in counters and integrated security systems for the two airports.
El-Kallawi was suspended by the NAC board in June last year and subsequently resigned later that year.
IBB said that El-Kallawi instructed them to proceed with procuring the materials and services required for the implementation of the agreement.
“The total cost to IBB in procuring what was set out amounted to N$27 million. This reflected the amount that IBB has already expended in performing its obligations in terms of the agreement,” the company stated in its particulars of claim.
Judge Herman Oosthuizen postponed the case to 11 June for the next status hearing.
FRED GOEIEMAN
The NAC has indicated it will defend the lawsuit brought by IBB Military Equipment and Accessory Supplies CC, which had initially been awarded a contract for the supply of airport scanners and other security measures at the Hosea Kutako International and Eros airports.
The agreement, which was subsequently cancelled, was concluded in June 2016.
Former NAC CEO Tamer El-Kallawi, who is an Egyptian national, cancelled the maintenance agreement in respect of airport scanners on 31 March 2016.
IBB alleges that the NAC made no attempt to comply with the provisions of the agreement and also did not attempt to attribute any fault or breach of the contract as the reason for the cancellation.
They therefore maintain that the cancellation was of no force. El-Kallawi had earlier explained the need to subject the procurement of the airport scanners' maintenance services to a public tender, which would be open to all interested bidders.
He had conceded that the agreement was not entered into subsequent to a public procurement process.
However, IBB alleged they concluded a renovation agreement with the NAC, which was partially in writing and partially orally concluded and that during the signing ceremony, the NAC was represented by El-Kallawi, while IBB was represented by its representative Muhammed Omar.
In terms of the agreement IBB was mandated to continuously maintain and ensure the functional efficacy of the airport scanners.
The agreed price for redesigning of the layout of the Hosea Kutako and Eros airports with the necessary equipment was N$156 125 620 in total.
IBB now claims to have suffered N$34 million in damages, arising from the breach and repudiation of the renovation agreement, after it had performed specific tasks in accordance with the deal.
These damages were incurred in the period between 29 August and 24 May 2017.
They now want the court to direct the NAC to honour its obligations in terms of the agreement.
The IBB was appointed to design, supply and install check-in counters and integrated security systems for the two airports.
El-Kallawi was suspended by the NAC board in June last year and subsequently resigned later that year.
IBB said that El-Kallawi instructed them to proceed with procuring the materials and services required for the implementation of the agreement.
“The total cost to IBB in procuring what was set out amounted to N$27 million. This reflected the amount that IBB has already expended in performing its obligations in terms of the agreement,” the company stated in its particulars of claim.
Judge Herman Oosthuizen postponed the case to 11 June for the next status hearing.
FRED GOEIEMAN
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