The Namibia Students Financial Assistance Fund has launched legal action against former chief executive Hilya Nghiwete, demanding the repayment of N$4.3 million.
This follows a Supreme Court judgement that overturned earlier rulings in her favour.
According to court documents filed in the High Court in February 2026 by then NSFAF lawyers Ellis Shilengudwa Incorporated, the fund argues that Nghiwete was unfairly enriched after receiving salaries, benefits, pension contributions and backpay linked to an arbitration award that was later set aside by the Supreme Court.
The dispute stems from Nghiwete’s dismissal from the fund on 8 February 2020. An arbitrator initially ruled in her favour, finding that her dismissal was unfair and ordering her reinstatement with backpay and benefits.
Pending appeals, the parties entered into a settlement agreement under which the fund continued making payments to Nghiwete.
Court documents show the fund paid her monthly remuneration and benefits between September 2021 and November 2022
In September 2022, the Labour Court partly upheld the arbitration ruling, confirming that the dismissal had been unfair, but overturning the reinstatement order.
The Labour Court ordered the NSFAF to compensate Nghiwete for remuneration she would have earned between February 2020 and July 2021.
By the time the Labour Court delivered its judgement, the fund had already paid Nghiwete a total of N$2.18 million in backpay under the settlement agreement.
However, the matter did not end there. Nghiwete appealed the Labour Court ruling to the Supreme Court, while the NSFAF filed a cross-appeal challenging the finding that the dismissal had been unfair.
The Supreme Court heard the matter in October 2023 and delivered judgement on 6 September 2024. In a major reversal, the apex court dismissed Nghiwete’s appeal and upheld the fund’s cross-appeal.
The Supreme Court ruled that the finding of unfair dismissal must be set aside, and further overturned the order requiring the NSFAF to pay remuneration for the period from February 2020 to July 2021.
The judgement effectively confirmed that Nghiwete’s dismissal was fair and that she was not entitled to reinstatement or compensation.
‘UNJUSTLY ENRICHED’
As a result, the fund now claims that everything paid to Nghiwete after the arbitration award and Labour Court ruling were made without legal justification once the Supreme Court overturned those decisions.
The lawsuit seeks repayment of N$2.18 million in backpay, N$1.74 million in salary-related payments, and bonuses made while the appeal was pending.
The fund also wants its former chief executive to pay back N$337 435 in pension fund contributions, and N$45 877 in other benefits, including social security and loan-related payments. Altogether, the amount paid is allegedly N$4.3 million, excluding interest and legal costs.
The NSFAF is also asking the court to award interest at a rate of 20% per year from the date of the judgement until the final payment, as well as the costs of the suit.
The fund claims the payments were made bona fide and in reasonable belief that they were legally due at the time, pending the finalisation of appeals.
The NSFAF further argues that once the Supreme Court ruled in its favour, the legal basis for the payments “fell away,” rendering Nghiwete unjustly enriched at the fund’s expense.
The Windhoek High Court this week issued a detailed case plan order in the matter during a case planning conference.
According to the order, legal representatives for Nghiwete appeared in court, while the NSFAF did not attend the proceedings.
The court directed Nghiwete to file her plea and any counterclaim by 1 June, while further pleadings are expected to continue throughout June.
Discovery documents must be exchanged by 3 July, and both parties are required to submit a joint case management report by 14 July.
Justice De Jager warned that sanctions could be imposed if the NSFAF fails to cooperate in preparing the joint report or fails to appear at the next scheduled court hearing on 21 July at 08h30.
The court further instructed Nghiwete’s legal practitioner, Ileni Velikoshi Incorporated, to serve the case management order on the fund before 29 May and file proof of service with the court.
The matter has been postponed to 21 July for a formal case management conference in Windhoek.
