TransNamib sued for N$30m

26 July 2019 | Justice

The Windhoek High Court this week ordered a court-accredited mediation settlement conference between TransNamib and RMH Logistics, which is suing for N$30 million, plus 20% interest, over the alleged wrongful termination of a service contract.

The mediation must be completed by 16 August.

In December 2015 TransNamib and HRD Trading Enterprises entered into an agreement for the soil remediation and rehabilitation of the Walvis Bay Locomotive Diesel Depot.

HRD Trading (then represented by Hendrik Dawids) and RHM Logistics (represented by Rodney Hanganda) in August 2016 signed an out-and-out cessation, after which RMH Logistics took over the TransNamib contract.

Court documents state that RMH Logistics then registered as a vendor of TransNamib and had been rendering the services as set out in the contract.

RMH Logistics was requested by TransNamib to submit a work plan detailing the scope and cost implications of the work. RHM Logistics states that in January 2016 it started its operations as an independent entity pursuant to the cessation.

It says due to TransNamib's “poor payment schedule” and in an attempt to get started on the job, RMH Logistics procured a credit facility from the SME Bank on the strength of the work plan submitted to the national carrier.

RMH Logistics said Hanganda and TransNamib (then represented by Magda Nawes) entered into cessation agreements with the SME Bank.

RHM Logistics was supposed to complete the work within two years, but it states that TransNamib on 6 September 2017 “wrongfully” terminated the contract, which it says has caused it damages of N$30 million.





CATHERINE SASMAN

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