The Namibia Airport Company is fighting to have the High Court compel Alliance Media Namibia to pay more than N$20 million for making use of its advertising space at Hosea Kutako International Airport.
NAC in court documents says Alliance failed to honour the 2016 court order, which was the result of its failure to honour the payments due to the company as per a 2008 agreement.
Alliance has not made any payments since June 2016 nor did it provide financial records.
In 2002, Alliance entered into an agreement with NAC for it to make use of 120 advertising spaces inside and outside areas at HKIA.
The agreement was extended in 2008 for three years and again in 2011.
However, Alliance breached the terms of the 2008 agreement, and the court ordered for it to pay N$534 697 per month for the N$17,5 million it owes NAC.
The company was also ordered to pay 58% of the revenue that was generated at HKIA after the expiration of the renewed agreement in September 2014 to date.
The payments are subject to Alliance providing audited statements of income to verify the actual revenue that was generated.
But the company failed to make its monthly payments.
Thus, NAC is now seeking a court order for the payment of N$23.1 million and Alliance to vacate HKIA.
In addition, they want the court to compel Alliance to remove its advertising materials from the airport.
In its defence, Alliance’s country operations manager Heidi Fernandes Guilheme claims NAC was the first one to breach their contract, as it started taking away advertising spaces allocated to the company.
This made it difficult for them to plan and provide a secure tenure with its clients.
“This had implications on the respondent’s reputation – in turn causing financial loss due to cites value decline,” said Guilheme.
He refuted claims the company has not met its obligations, citing payment of N$3.4 million was made for the months from September 2014 to July 2019.
Another payment of N$1.2 million was paid to NAC.
Alliance is accusing NAC of damaging some of the sites and preventing them from having access to the sites for repair, adding Alliance does not owe NAC N$23.1 million as it claims.
The matter is scheduled to be in court on 15 August for case management before judge Esi Schimming-Chase.
For the suit, NAC is represented by Elias Shikongo, while Patrick Kauta is representing Alliance.
– mamakali@nepc.com.na