A joint venture has threatened the National Petroleum Corporation of Namibia (Namcor) with a liquidation process if its debt of N$13 million is not settled.
The joint venture, comprising Ndakalimwe Investments and Revival Construction and Engineering, was contracted to construct a high-density polyethylene pipeline at Walvis Bay in January.
The venture is, however, yet to receive “a single cent” for its work, despite eight payment certificates for work done and services rendered issued by the project engineer.
The joint venture, through FB Law Chambers, is now threatening liquidation.
“We hold instructions to demand payment of the mentioned amount (N$13,1 million) within seven days into our client’s nominated bank account as it appears on the tax invoices. Should our client’s demands not be heeded, we hold clear instruction to institute legal action against Namcor without further ado.
“In addition, we shall institute liquidation proceedings against Namcor in terms of the Insolvency Act,” said FB Law Chambers’ Francois Bangamwabo.
The firm instituted legal action in the High Court on Thursday.
Namcor acting managing director Shiwana Ndeunyema says while most of these challenges are the result of historic factors, he fully embraces the company’s responsibilities, and will address them directly.
He says Namcor’s creditors book amounted to N$1,9 billion on 20 September, a reduction of N$600 million over six months, from N$2,5 billion in May.
“The significant reduction in the creditors book is mainly attributed to strategies outlined in our turnaround strategy, which include robust sales planning and improved margin analysis, supported by significant payments made to key product suppliers during July and August, following innovative debt restructuring with one of our key suppliers,” he says.
*Grab today’s edition of The Namibian for more on Namcor’s financial woes.
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