NC obtains seizure order against foreign firm

WINDHOEKFRED GOEIEMAN

Local construction heavyweight Namibia Construction has successfully obtained a High Court seizure order for money due to an international consortium by the Namibian government for the upgrading of five airports.
Namibia Construction took Spanish construction firm Ingenieria Y Economia del Transporte S.A to court in June 2009 for non-payment for work done.
Yesterday, Judge Shafimana Ueitele confirmed the interim order made on April 3 by the High Court as the final order. It ordered that Namibia Construction and the Spanish company, as well as the Ministry of Works and Transport, must come together to mitigate the effect on the ministry's losses to prevent the escalation of the interest on the seized amount. The Spanish firm was ordered to pay the legal costs of the seizure application.
Namibia Construction's claim submitted on June 30, 2009 for payment of more than N$130 million, excluding value-added tax and interest, is now expected to follow within 30 days. The interest on the amount was at the rate of 20% per year from June 30, 2009 until the date of payment.
The Spanish firm was awarded a multi-million-dollar contract by the then Ministry of Works, Transport and Communication to rehabilitate and upgrade air traffic control systems at five local airports, including the Walvis Bay Airport. The contract formed part of a bilateral co-operation programme between the governments of Spain and Namibia worth about N$545 million.
Ingenieria Y Economia del Transporte then sub-contracted the civil construction work at the Walvis Bay Airport to Namibia Construction.
Citing "poor workmanship", the Namibian government terminated the contract and the Spanish company was refused the provisional acceptance certificate for work done. This led to a drawn-out court battle with the Spanish company, which lodged a suit with the International Chamber of Commerce (ICC) in France against the Namibian government.
Advocate Casper H.J. Badenhorst (SC) and advocate Reinhardt Tötemeyer (SC) appeared on instruction of Advocate Geoffrey Dicks on behalf of the applicant while attorney Ad Slabbert of Dr Weder, Kauta & Hoveka law firm appeared for Ingenieria Y Economia del Transporte.