TransNamib has agreed to pay back more than N$3.5 million to Alliance Media after the railway company sued the advertising agency for failing to pay for the advertising spaces.

TransNamib sought an order that will bring to an end the contract that exists between it and Alliance Media.

According to TransNamib, it entered into a five-year contract with Alliance Media, in which over the said period, they would pay N$5.1 million for advertising spaces belonging to the railway company.

The contract stipulates that N$5.1 million will 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. The contract came to an end on 28 February 2022.

TransNamib says Alliance is in breach of the contract as they have failed to make the necessary payments. The railway company wants the court to compel Alliance to remove its advertising materials from its properties and vacate its offices at TransNamib.

However, in the midst of the lawsuit, Alliance also counterclaimed stating that it wants the railway company to pay back the advancement money it paid in July 2021 for the period starting from 1 March to 28 February 2026.

The parties, who have been in mediation, reached an agreement in February that TransNamib will pay back N$3 569 184 before or on 9 April. 

Furthermore, their agreement will cease. 

It was also agreed that Alliance Media will vacate TransNamib’s advertising spaces by no later than 9 July.

The agreement has since been made an order of the High Court. 

-mamakali@nepc.com.na