TransNamib and Alliance Media are locked in mediation after the railway company sued the advertising agency for failing to pay for advertising spaces.
High Court Judge Esi Schimming-Chase referred the matter for mediation to give an opportunity to the parties to try and reach a settlement in the case.
This follows after the parties agreed that they needed to resolve the matter in an amicable manner, where they will no longer incur litigation costs.
TransNamib is seeking an order that will bring to an end the contract that exists between it and Alliance Media.
The railway parastatal entered into a five-year contract with Alliance Media, in which, over the said period, the latter would pay N$5.1 million for advertising spaces belonging to the railway company.
The contract stipulates that N$5.1 million would be paid in portions of N$255 000 quarterly. But, should the company earn more than N$255 000, it will be liable to pay 45% of the net earnings.
In addition, should the net advertising revenue be less than N$255 000, there will be no additional payment.
The contract was entered into on 1 March 2013, and was extended for a five-year period on 29 July 2016. It came to an end on 28 February 2022.
TransNamib claims Alliance Media is in breach of the contract as they have failed to make the necessary payments.
The railway company wants the court to compel Alliance Media to remove its advertising materials from its properties, and to vacate its offices at TransNamib.
Alliance, however, has denied the allegations, claiming TransNamib was the party that breached the contract.
According to Alliance Media, TransNamib failed to give it the tenancy letters they needed for submission to the Windhoek municipality in order to apply for a licence for outdoor advertising.
Furthermore, TransNamib wrote to the City of Windhoek on 15 December 2018, stating that there was no lease agreement between them and Alliance Media.
For the suit, TransNamib is represented by Slysken Makando, while Patrick Kauta appears for Alliance Media.
In a separate matter, Alliance Media is being sued by the Namibia Airports Company (NAC) for N$20 million. The NAC is also claiming that Alliance Media breached their 2008 contract, and have not made payments since 2016.
Thus, the NAC is seeking a court order for the payment of N$23.1 million, and for Alliance Media to vacate the Hosea Kutako International Airport.
In addition, they want the court to compel Alliance Media to remove its advertising materials at the airport.
This suit will be back in court on 15 August.
– mamakali@nepc.com.na