Eba Kandovazu
WITH the deadline fast approaching for Air Namibia to make a payment of N$104 million before 18 February 2021, or risk liquidation, government is adamant that it will not make any money available again to bailout the national airline.
The High Court was on Friday scheduled to make an order on whether or not Air Namibia would be liquidated after Challenge Air, a now liquidated Belgian company, took the national airline to court after it failed to pay its debt of nine million euros.
However before a ruling could be made, the parties reached a settlement that includes Air Namibia paying N$7.3 million in monthly instalments until January next year.
Local Lawyer Sisa Namandje is representing the Belgian company, while Sacky Akweenda is representing Air Namibia.
Speaking to Informanté this afternoon, Minister of Public Enterprises, Leon Jooste reiterated that government already made it clear that it will not be in a position to make money available for a settlement and that that its position has not changed.
“I have still not received a formal copy of the settlement agreement and we will look into that once we do. This is a complex legal matter where the shareholder is cautious not to be seen as giving preference to one creditor over another. Government is in a position where spending has to be allocated meticulously to ensure that our economy recovers as quickly as possible and Treasury is currently in the process of planning the new budget to reflect exactly that,” he said.
Commenting on the 644 employees whose jobs are on the line, the Jooste said that government has to act in the best interest of all Namibian citizens.
“We understand that deeply, and whatever direction is taken will include measures to mitigate against the effects on employees, but as a government we have to act in the best interest of all 2.5million Namibians in the context of the current challenges we are facing as a nation,” Jooste stated.
Meanwhile, the Air Namibia Board of Directors are currently in a meeting to discuss the way forward, as well as how the airline will source the payment.
It has been reported that the board’s decision to agree to the settlement was largely made without consent from the public enterprises ministry and Cabinet.
Air Namibia Spokesperson, Twaku Kayofa, said a statement will be issued later in the afternoon on the outcome of the board meeting.
It is reported that in the last ten years, a total N$8.4billion was given to Air Namibia in bailouts.
