Rundu assets to be auctioned over unpaid debt
26 May 2021 | Government
The Rundu town council is on the verge of losing its equipment and vehicles if it does not reach an agreement by today with Arovar Trading Enterprises, a company that won a High Court battle in which they demanded N$1 million for services rendered in 2017 which the council failed to pay for.
Among the attached assets are the council’s Mercedes water truck, a Tata tipper truck, a grader, a Toyota Quantum bus and three concrete mixers.
The council dug its own grave after it failed to honour the 3 November 2020 High Court order.
The High Court ordered that the Rundu town council pay Arovar Trading Enterprises an amount of N$917 658.99 with interest of 17.2% per year from 2 October 2017 to the date of final payment, or alternatively, at 20% per year from the date of judgment to the date of final payment.
All this emanated from a N$3 million road maintenance tender awarded to Arovar Trading Enterprises in 2016.
Arovar was expected to complete its work by 24 January 2017.
The completion date was extended to 28 August 2017.
At the time of completing the work and having received a payment certificate from the engineer, the council was expected to pay Arovar Trading Enterprises N$1 268 762.59.
However, Arovar Trading Enterprises in its court papers claimed that the council only paid N$529 936.79.
It was on that basis Arovar Trading Enterprises took the council to the High Court and eventually the court ruled in their favour.
After having received the court order dated 3 November 2020, the Rundu town council did nothing about the money owed to Arovar Trading Enterprises, upon which the company attached the council’s movable assets.
After the auction of the assets was advertised in a local newspaper, an urgent council meeting was called, as the councillors were apparently unaware of the court order.
When contacted for comment yesterday, Rundu mayor Gabriel Kanyanga said the council’s lawyers were in contact with the lawyers of Arovar Trading Enterprises in order to find an amicable solution.