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Government caught in breach of contract

Government caught in breach of contract

Niël Terblanché

THE Namibian Government will be taken to task about legally binding contracts signed between Africa Selection Fishing Namibia (ASFN) and the Namibian Fishing Corporation (Fishcor) during an arbitration process.


Seaflower Pelagic Processing is a joint venture between the two shareholders and saw the construction of an ultramodern fish processing plant which has been left adrift after Fishcor did not honour its part of the deal to ensure that the factory received the agreed upon 50 000 tonnes of horse mackerel per year.


The chairperson of the Seaflower Pelagic Processing board of directors, Adriaan Louw, has indicated that the company and the majority shareholder, ASFN, are in the process of preparing for arbitration.


Government caught breach contract Namibian Government legally binding contracts signed Africa Selection Fishing Namibia ASFN
Pictured: Chairperson of the Seaflower Board, Adriaan Louw. Photo: Contributed


Louw said the company will be applying for an order from the arbitrator that will force Fishcor to honour the contracts it entered into with regards to ensuring that the recently completely processing plant receives the 50 000 tonnes of horse mackerel.


According to Louw, the contracts signed between the various entities in the joint venture are legally binding and the arbitration process is aimed at forcing the signatories to honour their part of the bargain.


In the alternative, Seaflower Pelagic Processing will be applying for an opportunity to renegotiate the various contracts entered into between ASF and Fishcor.


Louw also indicated that that the shareholding companies intend to claim loss of projected income from Fishcor because since the processing plant started operating two years ago, it never received the full annual quota of 50 000 tonnes as was agreed upon in the contracts.


The arbitration process follows after Seaflower Pelagic Processing did not succeed with an application in the High Court of Namibia for an interdict against Albert Kawana to sell 24 000 tonnes of the governments portion of the horse mackerel quota during an open quota auction that has since sunk into a sea of controversy.


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