DESPITE its out-of-court settlement with Epupa Investments, Peace Garden Transportation owner David Nghipunduka dismissed a number of claims made in the opposition affidavit by Epupa chairperson Brigadier General James Auala.
Peace Garden had lodged an urgent application with the High Court to force Epupa Investment to honour its loan repayment agreement. In his answering affidavit, Auala claimed, amongst others, that Epupa had entered into an agreement with Nghipunduka and not Peace Garden, thus disputing that the more than N$13 million loan was payable to Peace Garden. He further claimed that the shareholders of Epupa Investments never agreed to pledge their shares as security for the Peace Garden loan. Epupa Investment’s shareholders are Goldex Investments (with a 20 per cent shareholding), Merian Hoveka (24 per cent), Ngurimuje Tjirimuje (19 per cent), James Auala (10 per cent), Henry Hoveka (6 per cent), Martha Ishitile (six per cent), Loini Katoma (six per cent), Louise Taapopi (six per cent), and Lovina Fritz (four per cent).Board chairperson of Goldex Investments is Permanent Secretary for the Ministry of Youth and Sport Peingeindjabi Shipoh and its director is David Shimwino. Auala also said it was never the intention that Epupa Investment could not pay the loan off as soon as it was possible, and that the company never intended to created a fixed term loan. Not so, said Peace Garden. According to a board resolution of Epupa Investment on November 30 2010, Epupa would enter into a loan agreement with Peace Garden – for N$16,2 million of which only above N$13 million was granted. The agreement eventually entered into was between Peace Garden and Epupa, with all other shareholders except Goldex Investments signing it. In accordance with the agreement, the loan is repayable to Peace Garden within 42 months at a 13,5 per cent annual interest rate, and revenue sharing in the business of Epupa (page 3 of the agreement). Legal representative of Epupa, LorenzAngula later said the loan agreement was unlawful, but CEO of Peace Garden, Abner Nambombola, said the agreement was perused by the law firm, which gave the thumbs up to its clients two days thereafter. On November 8 2010 Auala wrote to Peace Garden acknowledging receipt of the more than N$13 million. The loan agreement stipulates that Epupa pledged its assets to Peace Garden, and in the event that any of its shareholders intend to sell their shares, the first offer would be made to Peace Garden or any other person authorised to do so by Peace Garden (pages 4 and 5 of the agreement). Furthermore, for additional security, all shareholding in Epupa was pledged to Peace Garden, which, according to the loan agreement, is entitled to at any time after the signing of the agreement, take possession of the share certificates. The loan agreement further reads: ‘The loan and interest must be paid off in such instalments and terms as per this agreement and may not be paid off prematurely, except if the lender [Peace Garden] in writing agrees to such.’Miffed at Auala’s assertions, Nghipunduka said he had hoped that Epupa would express its appreciations for the assistance given to it, but said the company had from the beginning ‘showed no truth’. He further stated that the loan agreement was signed by well-educated people – Auala with witnesses David Shimwino and Niilo Taapopi – clinched only on the advice from Mwahafa Ndilula who introduced Auala to Nghipunduka. ‘We are not a bank,’ added Nambombola. ‘We only assisted Epupa because it got a national tender that will help old people.’
