Three judges of the Namibia Supreme Court upheld a ruling by Windhoek High Court Acting Judge Kobus Miller that the Master of the High Court is liable for losses suffered by an heir of an estate.
Chief Justice Peter Shivute, Judge of Appeal Dave Smuts and Acting Judge of Appeal Shafimana Ueitele found that the Master was derelict in her duties to protect the interests of Maruzaan Martezia Moller, whose entire estate was allegedly squandered by Mervin Kozonguizi, a consultant working with deceased estates.
After the Master appointed him to handle the estate of the late Yolandi Beukes in February 2015, he allegedly went on a shopping spree, spending more than N$1.8 million.
He is currently on trial for fraud.
Shivute, who wrote the unanimous judgement, said the Master was aware that Moller would become a major in November 2015, but proceeded to appoint Kozonguizi as executor.
The judges stated that the Master did not inform the heir or her lawyers about Kazonguizi’s appointment.
After several complaints by the heir, the Master terminated Kozonguizi’s appointment, and cancelled a security of N$2 million that he had provided.
However, it was discovered by the new executors that Kozonguizi dissipated the entire estate for N$1 274 367.36 by transferring it into an account of a close corporation which he and other individuals controlled.
The heir then instituted action against the Master, the Minister of Justice and Kozonguizi.
Judge Miller found in favour of the heir, and ordered the Master and the minister to pay the sum misappropriated, plus interest and cost of the suit.
The minister and the Master then filed an appeal in the Supreme Court, claiming the judge erred in finding that the Master was negligent, as she could not detect any wrongdoing unless a complaint was laid.
The judges stated that there can be no doubt that the Master and her officials did not exercise reasonable care and diligence.
“There has been a near-total failure to observe care and diligence at every turn of the Master’s decisions.
They said the failure of the Master to hold Kozonguizi accountable by enforcing the security and other acts as well as omissions on the part of the Master and her officials were manifold manifestations of the lack of reasonable care and diligence towards the deceased’s estate, which caused the estate to suffer damages. The State is thus liable for the damage occasioned to the estate.
The Supreme Court judges ordered the appeal dismissed, and upheld the High Court order.
They also awarded costs on the scale of one instructed and one instructing legal practitioner to the respondents.
The respondents were represented by Eva Shifotoka, instructed by Une Nakamhela.
The State was represented by Advocate Werner Boesak, instructed by the government attorney.
-rrouth@nepc.com.na