TransNamib in urgent bid to stop vehicle auction

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TransNamib in urgent bid to stop vehicle auction
TransNamib in urgent bid to stop vehicle auction

Africa-Press – Namibia. TRANSNAMIB has filed an urgent application in the High Court to stop a Belgian liquidator from having vehicles belonging to the transport parastatal auctioned off as a result of a costs order granted by a judge in 2019.

The chief executive officer of the national railway operator, Johny Smith, through his legal representatives says TransNamib does not owe Anicet Baum, the liquidator of the company Challenge Air, “a single cent”.

In an affidavit filed at the High Court this week, Smith said the court’s deputy sheriff last week attached 11 of TransNamib’s vehicles to pay a bill of N$1 million, following a previous case between Baum and Air Namibia in which TransNamib was mentioned.

“The fact that Air Namibia has been liquidated does not provide a right to your client to extricate itself from that settlement and proceed against TransNamib,” reads a letter Smith’s lawyers sent to representatives of Baum.

Smith said TransNamib cannot afford to lose the 11 vehicles, because it would be detrimental to the company.

He described the legal costs that Baum is trying to get TransNamib to pay as “exorbitant”.

“It would significantly impact TransNamib’s ability to perform its daily functions properly, which would have a detrimental effect on its business. No fewer than 11 vehicles, including trucks [were attached],” Smith said in his affidavit.

“To enable TransNamib to deliver its very important and crucial services to the Namibian people and economy, the effect of not having access to these vehicles is debilitating,” he stated.

In 2019, a court ordered that Air Namibia and TransNamib should abide by a ruling made in Germany in January 2015.

“This case is about an old dispute between Air Namibia and the liquidator of a bankrupt company somewhere in Europe. Air Namibia rented a plane from the company, if I remember correctly,” Smith stated.

“The liquidator has been doggedly trying to get money out of Air Namibia and TransNamib as a former holding company,” Smith said.

Air Namibia is linked to Challenge Air, following a March 1998 agreement for the lease of a Boeing 767-300 aircraft by the airline.

TransNamib has maintained that the railway company was not party to the settlement agreement entered into between Air Namibia and Challenge Air in 2019.

Air Namibia has since been liquidated.

Smith insists that a costs order given against TransNamib by the High Court was incorrectly given.

“Considering that TransNamib did not oppose the application, and given that no cost order was sought against any party electing not to oppose the application, TransNamib was, in the circumstances, justified in accepting that the taxation [of legal costs] did not relate to it and was a matter between Anicet Baum and Air Namibia,” Smith said.

He said in fact Baum owes TransNamib about N$2,5 million from a case in 2004.

Smith said this amount accumulated to N$7,2 million with interest.

“Baum never paid the judgement debt, and as he has no assets here, TransNamib could not execute against him. Trying to do so abroad is not only extremely cumbersome, but also too costly,” Smith said.

Baum, through his lawyers, has filed a notice that it will oppose TransNamib’s application.

The case is set to be heard tomorrow.

The chief executive officer of the national railway operator, Johny Smith, through his legal representatives says TransNamib does not owe Anicet Baum, the liquidator of the company Challenge Air, “a single cent”.

In an affidavit filed at the High Court this week, Smith said the court’s deputy sheriff last week attached 11 of TransNamib’s vehicles to pay a bill of N$1 million, following a previous case between Baum and Air Namibia in which TransNamib was mentioned.

“The fact that Air Namibia has been liquidated does not provide a right to your client to extricate itself from that settlement and proceed against TransNamib,” reads a letter Smith’s lawyers sent to representatives of Baum.

Smith said TransNamib cannot afford to lose the 11 vehicles, because it would be detrimental to the company.

He described the legal costs that Baum is trying to get TransNamib to pay as “exorbitant”.

“It would significantly impact TransNamib’s ability to perform its daily functions properly, which would have a detrimental effect on its business. No fewer than 11 vehicles, including trucks [were attached],” Smith said in his affidavit.

“To enable TransNamib to deliver its very important and crucial services to the Namibian people and economy, the effect of not having access to these vehicles is debilitating,” he stated.

In 2019, a court ordered that Air Namibia and TransNamib should abide by a ruling made in Germany in January 2015.

“This case is about an old dispute between Air Namibia and the liquidator of a bankrupt company somewhere in Europe. Air Namibia rented a plane from the company, if I remember correctly,” Smith stated.

“The liquidator has been doggedly trying to get money out of Air Namibia and TransNamib as a former holding company,” Smith said.

Air Namibia is linked to Challenge Air, following a March 1998 agreement for the lease of a Boeing 767-300 aircraft by the airline.

TransNamib has maintained that the railway company was not party to the settlement agreement entered into between Air Namibia and Challenge Air in 2019.

Air Namibia has since been liquidated.

Smith insists that a costs order given against TransNamib by the High Court was incorrectly given.

“Considering that TransNamib did not oppose the application, and given that no cost order was sought against any party electing not to oppose the application, TransNamib was, in the circumstances, justified in accepting that the taxation [of legal costs] did not relate to it and was a matter between Anicet Baum and Air Namibia,” Smith said.

He said in fact Baum owes TransNamib about N$2,5 million from a case in 2004.

Smith said this amount accumulated to N$7,2 million with interest.

“Baum never paid the judgement debt, and as he has no assets here, TransNamib could not execute against him. Trying to do so abroad is not only extremely cumbersome, but also too costly,” Smith said.

Baum, through his lawyers, has filed a notice that it will oppose TransNamib’s application.

The case is set to be heard tomorrow.

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