Staff Reporter
PRESIDENTIAL candidate Ally Angula has been ordered by the High Court to repay an amount of N$ 1.2 million on a Nedbank loan after losing the case against the bank.
The first defendant, Angula, concluded a personal loan agreement with Nedbank. In terms of the loan agreement, the plaintiff advanced an amount of N$ 4.7 million to the first defendant at a floating interest rate linked to prime. The plaintiff’s claim is based on the first defendant having fallen in arrears in the amount of N$ 1.2 million, which she has now been ordered to pay.
Providing a background on how Angula was advanced the loan, court documents revealed that during 2006/2007, Glenny Matipa Matswetu, Angula’s former brother-in-law, and his business partner Sajee Poulose acquired shareholding in Impact Distribution Namibia (Pty) Ltd. Impact Distribution Namibia (Pty) Ltd was the licensed distributor of Microsoft products in Namibia. Matswetu approached Angula to become Impact’s Namibian shareholder. However, the majority shareholders remained Matswetu and Poulose.
The majority shareholders sought a one million Namibian Dollar overdraft from the plaintiff, Nedbank, and the first defendant, Angula, signed an unlimited surety for the overdraft. This overdraft was increased, and a bank guarantee was issued in Microsoft’s favour.
However, the majority shareholders could not fulfil their surety agreements with the bank. Impact’s account deteriorated to the point that the bank called up the facilities and sought recovery from the sureties. The plaintiff issued claims against Impact and the sureties in solidum as co-principal debtors and obtained judgment against the majority shareholders.
A settlement was reached between the plaintiff and Angula when the latter agreed to settle the entire outstanding balance sued for by the plaintiff. The first defendant concluded a personal loan agreement with the plaintiff, resulting in this matter. In terms of the loan agreement, the plaintiff advanced an amount of N$ 4,742,184.98 to the first defendant at a floating interest rate linked to prime. The loan amount was allocated to the two accounts of Impact Distribution (Pty) Ltd in full and in final settlement of Impact’s liability to the plaintiff. The plaintiff’s claim is based on the first defendant having fallen in arrears in the amount of N$ 1,250,249.34.
In her judgment, Judge Hannelie Prinsloo held that at no stage did the parties negotiate a stand-alone loan agreement wherein the first defendant would have the ability to do drawdowns for her own use. The judge further held that the purpose of the personal loan was to settle Impact’s debt and avoid the liability that would follow upon the granting of a judgment against her, as in the case of the other sureties.
Additionally, the court held that the internal drawdown was as per the agreement between the plaintiff and the first defendant to settle the indebtedness of Impact and that a party who signifies their assent by signing a written contract is ordinarily held bound by its terms, whether or not they have read or understood them. Judge Prinsloo further found that the loan agreement is valid, binding, and enforceable in a court of law.
“The plaintiff’s claim is upheld, and judgment is granted in favour of the plaintiff against the first and second defendants, jointly and severally, the one paying the other to be absolved in the following terms: Payment in the amount of N$ 1,250,249.34; Interest on the said amount at the rate of 13.75% per annum, being the maximum interest rate in terms of the Usury Act, calculated daily, charged monthly in arrears and compounded from 10 November 2018 to date. Cost of suit,” Judge Prinsloo said.
