The High Court has ordered trade unionist Petrus Nevonga and former Swapo councillor Christian Itope to pay Chinese businessman Jack Huang N$1.6 million.
Huang sued Nevonga, Itope and Jinhao Investment CC for N$3.7 million after an Ondangwa supermarket business deal went sour. On Tuesday, acting Judge Kaijata Kangueehi ordered that Nevonga and Itope should each pay Huang N$800 000.
Each of them should make their first payments of N$100 000 on or before 2 April 2023. Their last payment of N$300 000 each should be made on or before 1 November 2025.
The court further ordered there will be an interest at 20% per annum from the date of judgment to date of final payment.
In his particulars of claim, Huang claims the three concluded an agreement on 27 October 2015 to form Jinhao Investment CC trading as Super Foods at Sun Square Mall in Ondangwa.
The terms of the said agreement were that Huang would own 40% interest and the remainder 60% would be shared by Nevonga and Itope.
It was agreed Nevonga and Itope would contribute N$4.8 million and Huang would contribute N$3.2 million. Since Nevonga and Itope were unable to raise the required funds, Huang loaned them N$1.6 million for capital contribution.
After six months of Jinhao Investment CC being operational, Nevonga and Itope would pay back N$800 000 interest-free.
The remaining N$800 000 would accumulate interest from the date of payment of N$4.8 million. The agreement indicates that Nevonga and Itope would be jointly and severally liable for the said loan.
However, in February 2018 when Huang wanted out of their partnership, Nevonga and Itope refused to pay what is owed to him. Nevonga and Itope have denied owing Huang. According to the pair, the money was a loan to the company and not to them.
They also deny ever admitting to being personally liable to Huang for the money he loaned Jinhao Investment CC. -mamakali@nepc.com.na