Nevonga, Itope deny owing Huang

The legal battle between businessman Jack Huang, unionist Petrus Nevonga and Christian Itope was back before Judge Shafimana Ueitele in the High Court yesterday.

Huang is suing the two, along with Jinhao Investment CC, for N$3 million in an amended particulars of claim filed in March, in which he alleges making various payments.

Nevonga is the long-serving Namibia Public Workers' Union (Napwu) secretary-general, while Itope is a former Ondangwa councillor.

Nevonga, Itope and Jinhao filed an intention to defend last year.

In their amended plea they denied Huang's claim that he had paid N$3.2 million as well as an additional N$1.6 million “in respect of the capital contribution on behalf of Nevonga and Itope, as agreed”.

They 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”.

Huang said he left the closed corporation on 2 February 2018.

It was agreed Huang would appoint a proxy to continue as a member in his stead and thus 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.”

Huang has filed three claims. The first is payment of N$1.6 million, the second 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 loaned N$300 000 to the company.

This was also discussed during the August meeting. “Went through the suppliers list. Most urgent suppliers whose payments are outstanding were identified. It was determined that Mr Huang was to (forward) an amount of N$300 000 to pay these urgent suppliers as soon as possible, to avoid sour relations between us and these suppliers. Members are to pay back this amount according to their percentages.” The minutes state that Nevonga and Itope would each have to pay N$90 000 in this regard.

In their amended plea, the 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 are not indebted to Huang. They asked the court to dismiss Huang's claim, with costs.

On 12 March, Ueitele granted Huang a payment of N$500 000, after his company, Sun Investments, had sued Jinhao Investment for N$715 000. Jinhao Investment traded as Super Foods, a store at Sun Square Mall in Ondangwa.

According to court papers, the company was in a state of chaos, and there were several problems with paying suppliers, as indicated in the minutes of company meetings.

“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”.

Mention was also made of a frozen Nedbank account and that “for now, salaries were paid by Mr Huang”. And “as soon as the bank (account) is unfrozen, Mr Huang will be refunded the amount paid”.

Huang is represented by Appolos Shimakeleni in both matters and Kadhila Amoomo appears for Nevonga and Itope.

YANNA SMITH