TransNamib faces liquidation battle … Namandje fires off letter demanding payment of Air Namibia’s

RAILWAY parastatal TransNamib is staring possible liquidation in the face if it fails to fight off an attempt by the liquidators of defunct Belgian airline Challenge Air SA to claim N$161 million from its coffers.

The Belgian firm’s liquidators, Anicet Baumm, through local lawyer Sisa Namandje, has issued a letter of demand in which it says TransNamib is being sued for the same amount defaulted by Air Namibia by virtue of being a sister company to the former national airline.

The letter, which The Namibian has seen, shows that Challenge Air wants to recoup the N$161 million that Air Namibia failed to pay them before it was liquidated.

“This letter accordingly serves as a demand … of payment of the total outstanding amount currently standing at the amount of EUR 9 863 053,04 within 15 days of receipt of this letter of demand, failing which you shall be deemed to be unable to pay your debts in accordance with the above section of the Companies Act, and we will proceed with an application in the High Court for an order seeking TransNamib’s liquidation,” Namandje wrote.

Minister of public enterprises Leon Jooste, however, this week said he believes the railway company will fight the liquidation challenge in court.

This follows after Challenge Air in 2020 filed for the liquidation of the loss-making flag carrier Air Namibia, citing it was insolvent and unable to repay about N$253 million in debt incurred for the lease of a Boeing 767 in 1998.

Although the two companies reached a settlement, the government still moved to liquidate Air Namibia.

Challenge Air, through Namandje, has written to TransNamib, the Ministry of Works and Transport, and the Ministry of Public Enterprises to demand the outstanding payment.

“You would recall that, in arbitration proceedings between our client, Air Namibia Limited and TransNamib Holdings Ltd, a partial final award on liability was made on 6 August 2018, as well as the final award on quantum,” Namandje wrote.

The letter stated that an order of the regional court of Munich, Germany, was made against Air Namibia and TransNamib on 12 January 2015, and despite the awards having been brought to the attention of the two parastatals, Challenge Air only received partial payment from Air Namibia before its liquidation.

Abigail Raubenheimer, TransNamib’s spokesperson, said the railway company reiterates its stance that it was not party to the settlement agreement entered into between Air Namibia and Challenge Air in 2019.

“In the meantime, TransNamib is consulting its legal representatives on the appropriate action to defend this letter of demand,” she said.

Meanwhile, Job Muniaro, the secretary general of the National Union of Namibian Workers, says the government should consult the federation and other stakeholders to find a solution to the problem.

He says the government should avoid making the same mistake it made by liquidating Air Namibia.

The government liquidated its national flag carrier without considering the consequences, he says.

“What we have been saying is that we should avoid liquidating ourselves, like the government did with liquidating Air Namibia. That is where the problem is.

“If TransNamib is liquidated, it would not only be an embarrassment to the railway company, but an embarrassment to the government and the entire country,” Muniaro says.

He says the company’s workers and their families would be affected the most, not politicians.

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