Okakarara faces N$7m lawsuit
An Ondangwa-based construction company which is facing an N$4-million lawsuit in connection with an unpaid overdraft at the liquidated SME Bank, is suing the Okakarara town council for N$7 million.
Papers filed at the Windhoek High Court in August 2018 by Cango Construction CC, headed by businessman Michael Tabai Nghulondo, are asking the court to order the town council to pay N$7 365 850.56 in outstanding monies owed to the company for the construction of services in 2016.
Part of the N$7-million claim, is a claim of nearly N$4.5 million which Congo Construction claims the council owes it for standing costs, including management costs, labour on site, and plant standing costs, which it accrued while work was undertaken and before they ceased the job due to non-payment.
In October 2018, Namibian Sun reported the liquidators of the SME Bank are suing Cango Construction for N$4 million for unpaid debt.
In court papers filed by the Okakarara town council, they admit to not paying two payment certificates, four and five, which include one outstanding bill of just over N$530 000, and another of a little more than N$340 000, plus outstanding interest.
The town council denies owing Cango Construction any further monies.
The town council further claims its failure to pay the two payment certificates “was not out of its own volition but due to circumstances beyond its control”, noting that Cango Construction was informed of this.
Difficult road
According to the particulars of claim filed by Cango Construction, the town council in December 2015 awarded the construction firm, through its agent for the administration and execution of the job, Conselect Engineering, a tender for the construction of services for the CBD2 area of the town.
The construction company claims it complied with all its contractual obligations but could not complete the job due to the town council's breach of contract, including non-payment within a prescribed timeframe to allow the construction company to continue working.
The construction brief included the building of gravel roads, and laying down extensive water and sewer networks.
Court documents note that as a result of these issues, Cango Construction eventually left the construction site on 21 December 2016, informing the town council of the reasons.
Cango Construction's amended particulars of claim, lists various payments due by the town council, including the two outstanding payments the council has admitted to.
Papers filed by the council admit that two payments are outstanding as claimed by Cango, but deny any further debt, as well as breaching the terms of the contract, and failing to communicate with the company.
The council claims “there has been communication at all relevant times keeping Cango Construction abreast of the defendant's predicament,” though no additional information detailing the problem is filed as yet.
Cango Construction further claims the town council accepted their withdrawal from the contract due to non-payment but the town council denies this.
Moreover, the town council denies it owes more than N$162 000 for measured works completed by the company, and the interest of N$32 000 on that amount.
Cango further alleges that it incurred wasted costs of more than N$560 000 in respect of a bank guarantee between 12 January 2017 and 30 June 2018, which the town council is refusing to pay.
In court documents filed ahead of the mediation round, the town council has taken Cango to task for not providing a copy of the agreement signed between the parties.
On 22 February, the court ordered the matter to be referred to mediation which must be concluded by no later than 29 March 2019.
The matter was postponed to 8 April for a status hearing.
The construction firm is represented by Ndateelela Shilongo of Sisa Namandje & Co. Inc. while the town council is represented by Heather Harker from the Office of the Government Attorney.
Judge Herman Oosthuizen presides.
JANA-MARI SMITH
Papers filed at the Windhoek High Court in August 2018 by Cango Construction CC, headed by businessman Michael Tabai Nghulondo, are asking the court to order the town council to pay N$7 365 850.56 in outstanding monies owed to the company for the construction of services in 2016.
Part of the N$7-million claim, is a claim of nearly N$4.5 million which Congo Construction claims the council owes it for standing costs, including management costs, labour on site, and plant standing costs, which it accrued while work was undertaken and before they ceased the job due to non-payment.
In October 2018, Namibian Sun reported the liquidators of the SME Bank are suing Cango Construction for N$4 million for unpaid debt.
In court papers filed by the Okakarara town council, they admit to not paying two payment certificates, four and five, which include one outstanding bill of just over N$530 000, and another of a little more than N$340 000, plus outstanding interest.
The town council denies owing Cango Construction any further monies.
The town council further claims its failure to pay the two payment certificates “was not out of its own volition but due to circumstances beyond its control”, noting that Cango Construction was informed of this.
Difficult road
According to the particulars of claim filed by Cango Construction, the town council in December 2015 awarded the construction firm, through its agent for the administration and execution of the job, Conselect Engineering, a tender for the construction of services for the CBD2 area of the town.
The construction company claims it complied with all its contractual obligations but could not complete the job due to the town council's breach of contract, including non-payment within a prescribed timeframe to allow the construction company to continue working.
The construction brief included the building of gravel roads, and laying down extensive water and sewer networks.
Court documents note that as a result of these issues, Cango Construction eventually left the construction site on 21 December 2016, informing the town council of the reasons.
Cango Construction's amended particulars of claim, lists various payments due by the town council, including the two outstanding payments the council has admitted to.
Papers filed by the council admit that two payments are outstanding as claimed by Cango, but deny any further debt, as well as breaching the terms of the contract, and failing to communicate with the company.
The council claims “there has been communication at all relevant times keeping Cango Construction abreast of the defendant's predicament,” though no additional information detailing the problem is filed as yet.
Cango Construction further claims the town council accepted their withdrawal from the contract due to non-payment but the town council denies this.
Moreover, the town council denies it owes more than N$162 000 for measured works completed by the company, and the interest of N$32 000 on that amount.
Cango further alleges that it incurred wasted costs of more than N$560 000 in respect of a bank guarantee between 12 January 2017 and 30 June 2018, which the town council is refusing to pay.
In court documents filed ahead of the mediation round, the town council has taken Cango to task for not providing a copy of the agreement signed between the parties.
On 22 February, the court ordered the matter to be referred to mediation which must be concluded by no later than 29 March 2019.
The matter was postponed to 8 April for a status hearing.
The construction firm is represented by Ndateelela Shilongo of Sisa Namandje & Co. Inc. while the town council is represented by Heather Harker from the Office of the Government Attorney.
Judge Herman Oosthuizen presides.
JANA-MARI SMITH
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