Hauwanga, wife and company must pay Nedbank N$50 million debt

Businessman Benjamin Hauwanga, his wife and a close corporation of Hauwanga have to pay about N$50 million to Nedbank Namibia, according to an order issued in the Windhoek High Court on Friday.

In terms of a judgement delivered by acting judge Deon Obbes, Nedbank Namibia was granted a judgement for the payment of N$50 million against Hauwanga, his wife, Mirjam Hauwanga, and the close corporation BH Properties.

Three immovable properties, situated in Windhoek and at Oshikango, can now also be sold to raise money to pay Hauwanga’s debt to the bank, after Obbes declared the properties executable.

Obbes also ordered that interest at a rate of 14.8% annually, calculated from 21 October 2022, should be paid on the outstanding amount until the date of payment.

The judgement against Hauwanga was delivered two days after he was honoured by the government of Angola’s Cunene province for his contribution to development and humanitarian work in Angola.

The bank filed a lawsuit against Hauwanga, his wife and BH Properties CC in the Windhoek High Court in December 2022.

The court was informed that Nedbank and Hauwanga entered into an overdraft loan agreement in January 2021. In terms of that agreement, the bank lent an amount of about N$49.5 million to Hauwanga, with N$49 million of that amount being an overdraft facility for working capital expenses.

According to a former Nedbank official who testified on behalf of the bank during the hearing of its claim, the bank first granted Hauwanga an overdraft facility of N$5 million in September 2018, with the amount increased to N$15 million later during the same month, Obbes recounted in his judgement.

In March 2019, Hauwanga applied for an increase of the overdraft facility to N$30 million, followed by a request to have the overdraft increased to N$45 million during July 2019.

At that stage, Hauwanga agreed that a bond for N$45 million could be registered over a property at Oshikango, which according to the former bank official was valued at more than N$180 million at the time.

The property at Oshikango is 23 908 square metres in size and is one of the three properties that Obbes has declared executable.

Hauwanga applied for a further increase in his overdraft facility with Nedbank, from N$45 million to N$49 million, during February 2020, Obbes recounted.

During 2021, the bank requested documentation from Hauwanga, including the financial statements of companies in his group of businesses, and warned him that the overdraft facility would be called up if the required documents were not provided. According to the bank, the documentation was not provided.

The bank also notified him during November and December 2021 about interest payments that had to be made on the overdraft, before the outstanding interest was paid by mid-December 2021.

By November 2022, the bank sent a letter of demand to Hauwanga, demanding payment of the total outstanding amount owed to the bank, which on 21 October 2022 stood at N$50 million.

It was argued on behalf of Hauwanga and the other defendants – none of whom testified during the hearing of the case before Obbes – that Nedbank’s claim was premature and that the bank did not prove the notice in which it demanded payment of the outstanding amount had been delivered to Hauwanga.

Obbes said in his judgement that the bank was, in terms of its agreement with Hauwanga, entitled to demand immediate repayment of the overdraft in the event of a default by Hauwanga.

Obbes added that according to a witness who testified on behalf of the bank, Hauwanga failed to honour the arrangement with the bank to service the interest on the overdraft, and that was what led the bank to call up the overdraft facility.

HONOURED

During a ceremony held on Wednesday, Cunene governor Gerdina Didalelwa presented Hauwanga with a recognition and appreciation award as part of Angola’s 50th independence celebrations.

Didalelwa praised Hauwanga for his long-standing support to Angolan communities, noting that his philanthropic efforts and investments have helped improve livelihoods across the province.

“Hauwanga has not only contributed to business growth, but has also built schools, clinics and houses for our people. His compassion and commitment to our communities are deeply appreciated,” she said.

Hauwanga, who assisted People’s Liberation Army of Namibia fighters during the liberation struggle, later established various businesses and continued to give back through development projects.

Among his contributions is the construction of 96 houses at Ondjiva, many of which were initially given to Angolan families affected by their country’s civil war.

The award recognises his general philanthropy, humanitarian spirit and solidarity with the MPLA-led government, particularly during the country’s rebuilding years.

During the ceremony, Hauwanga expressed his gratitude, saying he was humbled to be acknowledged by a nation that once sheltered many Namibians during the struggle for independence.

In a statement issued on Saturday, president Netumbo Nandi-Ndaitwah congratulates Hauwanga on the honour he received from the Cunene provincial government.

“His contributions, including the construction of schools, clinics and 96 houses at Ondjiva for families affected by the civil war have improved many lives and strengthened regional solidarity,” she says.

Nandi-Ndaitwah commends Hauwanga for his compassion, generosity and enduring partnership with the people of Angola, a nation she says shares deep historical and emotional ties with Namibia.

His continued support and gratitude to Angola reflect true pan-African values, she says. – Additional reporting Martin Endjala

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.