Nust in legal battle over N$395 000 food purchase debt

The Namibia University of Science and Technology (Nust) has been ordered to pay a food purchase agreement debt worth N$395 000 to XL Investment CC.

The company, represented by Utaara Jauch, has issued a stern letter of demand to Nust, urging the institution to settle its outstanding dues.

The contract between Nust and XL Investment CC was to ensure a steady supply of essential provisions, ranging from fresh produce to dry goods, to Nust’s Rietfontein campus.

However, the agreement was marred by Nust’s failure to uphold its end of the bargain, as the institution neglected to settle the invoice within the stipulated 30-day period.

XL Investment has given an ultimatum to the institution, stating that failure to honour the outstanding invoice within seven days will result in the commencement of legal proceedings.

“Our instruction is that despite demand, Nust has failed to honour the invoice. Our instructions are to demand, as we hereby do, payment in the amount of N$395 000 within seven days of the receipt of this letter, failing which we hold instructions to institute legal proceedings without further notice to you for the appropriate relief,” noted the letter of demand.

“Our instructions are that our client is a registered vendor with Nust and has been contracted in to supply Nust with fresh produce, frozen goods, meat products, as well as dry goods.

“It is our further instruction that on or about 5 February 2024, yourself and our client entered into a verbal agreement for the supply of the goods, dried goods in the value of N$119 262, frozen goods in the value of N$63 604 and meat products in the value of N$146 045,” he said.

“Our client would supply the goods to Nust at its Rietfontein campus located in Rietfontein, on or before 7 February 2024, as proof of delivery of the goods, our client would issue Nust an invoice, detailing the goods that have been delivered.

“Nust will settle the invoice within 30 days from the date of the invoice. On 7 February 2024, our client duly performed its obligations under the agreement and delivered the goods to the Rietfontein campus in accordance with the following invoices,” Jauch said. Speaking to The Namibian last week, Nust spokesperson John Haufiku asserted that the company had been paid.

“We are aware of the letter of demand that was received, unfortunately this payment was delayed by high traffic of work that occurs during the registration period. The payment was processed and paid earlier this [last] week,” he said. Jauch has confirmed that Nust paid the debt and says they have parted ways with Nust.

“The money was paid a few days ago, and I do not have anything else to comment on the matter, we have parted ways with the institution.”