Three companies and a family trust of businessman Vaino Nghipondoka have agreed to pay close to N$4 million to the Development Bank of Namibia (DBN), after the bank sued them for N$4.5 million.
Nghipondoka, his companies Profile Technologies, Profile Investment Holdings and Profile Investments, and the Vaino Nghipondoka Family Trust signed a settlement with the DBN after the bank sued them in the Windhoek High Court.
In the settlement agreement, seen by The Namibian, Nghipondoka, his three companies and the family trust have agreed to pay N$3.97 million, plus interest calculated from 25 April this year, to the DBN.
It was also agreed that a first payment of N$500 000 would be made before the end of July this year, followed by monthly payments of not less than N$150 000 until the full amount has been paid.
Nghipondoka, his three companies and the trust further agreed to pay legal fees amounting to about N$232 800 to the DBN in two equal instalments at the end of May and June this year.
The settlement agreement was reached in a High Court case that the DBN instituted against Nghipondoka’s three companies, the trust and Nghipondoka personally in February last year.
In the DBN’s claim against the companies, Nghipondoka and the trust, it is stated that Profile Technologies, represented by Nghipondoka, concluded a finance agreement with the bank in March 2021.
In terms of that agreement, the DBN lent an amount of N$5.57 million to the company.
The bank says it was also agreed that Profile Technologies would repay the loan amount plus interest at the end of March 2023.
According to the DBN, Profile Technologies failed to repay the loan as agreed, though, and by the end of October 2023 the company owed N$4.5 million to the bank.
Before the loan agreement signed in March 2021, Nghipondoka, Profile Investment Holdings, Profile Investments and the Vaino Nghipondoka Family Trust entered into a suretyship agreement with the DBN in July 2018, a lawyer representing the DBN says in the bank’s claim.
In terms of the suretyship agreement, Nghipondoka, the trust, Profile Investment Holdings and Profile Investments agreed to also be responsible for the payment of Profile Technologies’ debts to the DBN, the bank’s lawyer stated.
Nghipondoka, his three companies and the trust notified the court in February last year that they would defend the legal action taken by the DBN.
In a plea filed on the five defendants’ behalf in May last year, they denied that they breached the terms of the loan agreement between the DBN and Profile Technologies by failing to repay the loan amount, and stated that a payment of N$320 000 had been made to the bank.
The settlement agreement has been made an order of the court.
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