THE Namibia Tourism Board (NTB) has won its civil case against African music awards company Mundial Telecom, in which it sued the company after a botched deal to stage the Kora music awards in Namibia in 2016.
The Kora awards was founded in 1996 by Benin-born businessman Ernest Adjovi and created to recognize African musicians.
According to the agreement, Mundial Telecom was set to host the Kora awards in Namibia on 20 March 2016 as part of the NTB’s plans to promote tourism in the country.
In exchange, a total of U$1.5 million (N$23 million) was to be paid to the organizer, Mundial Telecom.
Inter alia, Mundial Telecom was obligated to render 26 promotional television clips before the awards ceremony, showcase NTB promotional TV clips, and host the Kora awards in Namibia.
If the awards did not take place in the country, Mundial Telecom would refund the said amount.
In his judgment, Judge Herman Oosthuizen stated that the plaintiff, NTB, paid the service fee of U$1.5 million on a different set of dates from December 2015 to 17 January 2016.
He, however, noted that the event never took place in the country.
Oosthuizen further summarized that the NTB is claiming Mundial Telecom failed to repay the money and used the funds it had received from the NTB for purposes other than those intended and agreed to by the company and the tourism board. In addition, they shared that the no tourism package was offered as well.
Oosthuizen further stated that the defendants in the matter, Mundial Telecom, stated that the payments were not made timeously and that this was a breach of contract. The defendant further admitted that it did not refund the U$1.5 million as it incurred costs exceeding the agreed amount.
He however shared that the plaintiff had to counterclaim its alleged reasonable expenses which it failed to do.
“In the premises the court finds that the plaintiffs claim for a refund of the consideration is sound and that proved it on a balance of probabilities. The defendant shall repay the amount of N$23 506 234 to the plaintiff,” Oosthuizen ruled.
He further ordered the defendant to pay interest at the rate of 20% per annum to the plaintiff calculated on N$23 million from 1 July 2016 to date of final payment.
The defendant was also ordered to pay for the legal costs incurred by NTB. The matter was finalized and struck off the role.
Ernest Adjovi. Photo: File