Court orders Ally to pay N$1.25m to Nedbank
Aspiring independent presidential candidate and chartered accountant Ally Angula has lost a court battle with Nedbank Namibia over a personal loan agreement totalling over N$4.7 million, for which she has been ordered to pay N$1.25 million.
In 2006 and 2008, Angula's ex-brother-in-law, Glenny Matswetu, and his business partner Sajee Poulose, bought shares in Impact Distribution Namibia (Ltd), the licensed distributor of Microsoft products in Namibia.
They reportedly approached Angula to become a minority shareholder in the company.
Matswetu and Poulose needed a N$1 million overdraft from Nedbank Namibia, for which Angula signed surety.
They subsequently increased the bank overdraft, and a bank guarantee was granted to them.
Agreement breached
However, by 2011, Impact's account had deteriorated to the point where the bank was forced to call up the sureties.
Angula, listed as the first defendant in the lawsuit, and her husband, Manna Blessing Jonah Matswetu, whom she was married to in community of property, were dragged to court by Nedbank Namibia six years ago for breaching the loan agreement.
The original N$4.7 million personal loan, signed on 14 December 2012, was supposed to be repaid with a lump sum of N$650 000 on 21 December of that year, the bank said.
Thereafter, monthly payments of N$45 000 were to be made until the debt was settled. However, Angula, a former deputy director in the finance ministry, reportedly refused to settle the outstanding payments.
Voluntary acceptance
In her judgment, High Court judge Hannelie Prinsloo said it is clear that Angula agreed to the loan but sought to avoid the consequences. The judge pointed out that the loan was for two facilities for Impact Distribution Namibia, of which Angula was a shareholder. Angula, inter alia, provided surety for these facilities.
When Impact defaulted on its loan agreement, Angula addressed the matter with the bank, as she was a chartered accountant with KPMG at the time and her accreditation was at risk.
“Impact’s liability was voluntary accepted by Angula, and that liability included the fees and the N$2 million write-offs, which the bank could recover from her personal loan. Angula knew all of this and would have been in an even better position to consider Impact’s liability as a result of her expertise as a chartered accountant,” the judge said.
The court emphasised that Angula complied with the loan agreements and even began paying off the lump sum of N$650 000. However, it appears that her issues with Impact's exposure only arose when she encountered financial difficulties.
At that time, she was no longer with KPMG and had entered into a farming venture that did not yield the expected returns. The judge also pointed out that Angula had “clearly lost sight of the fact that she has signed an unlimited surety in favour of Nedbank Namibia.”
Angula reportedly calculated the debt amount at N$3.6 million before signing the personal loan agreement, but she later changed her tune and distanced herself from this debt.
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In 2006 and 2008, Angula's ex-brother-in-law, Glenny Matswetu, and his business partner Sajee Poulose, bought shares in Impact Distribution Namibia (Ltd), the licensed distributor of Microsoft products in Namibia.
They reportedly approached Angula to become a minority shareholder in the company.
Matswetu and Poulose needed a N$1 million overdraft from Nedbank Namibia, for which Angula signed surety.
They subsequently increased the bank overdraft, and a bank guarantee was granted to them.
Agreement breached
However, by 2011, Impact's account had deteriorated to the point where the bank was forced to call up the sureties.
Angula, listed as the first defendant in the lawsuit, and her husband, Manna Blessing Jonah Matswetu, whom she was married to in community of property, were dragged to court by Nedbank Namibia six years ago for breaching the loan agreement.
The original N$4.7 million personal loan, signed on 14 December 2012, was supposed to be repaid with a lump sum of N$650 000 on 21 December of that year, the bank said.
Thereafter, monthly payments of N$45 000 were to be made until the debt was settled. However, Angula, a former deputy director in the finance ministry, reportedly refused to settle the outstanding payments.
Voluntary acceptance
In her judgment, High Court judge Hannelie Prinsloo said it is clear that Angula agreed to the loan but sought to avoid the consequences. The judge pointed out that the loan was for two facilities for Impact Distribution Namibia, of which Angula was a shareholder. Angula, inter alia, provided surety for these facilities.
When Impact defaulted on its loan agreement, Angula addressed the matter with the bank, as she was a chartered accountant with KPMG at the time and her accreditation was at risk.
“Impact’s liability was voluntary accepted by Angula, and that liability included the fees and the N$2 million write-offs, which the bank could recover from her personal loan. Angula knew all of this and would have been in an even better position to consider Impact’s liability as a result of her expertise as a chartered accountant,” the judge said.
The court emphasised that Angula complied with the loan agreements and even began paying off the lump sum of N$650 000. However, it appears that her issues with Impact's exposure only arose when she encountered financial difficulties.
At that time, she was no longer with KPMG and had entered into a farming venture that did not yield the expected returns. The judge also pointed out that Angula had “clearly lost sight of the fact that she has signed an unlimited surety in favour of Nedbank Namibia.”
Angula reportedly calculated the debt amount at N$3.6 million before signing the personal loan agreement, but she later changed her tune and distanced herself from this debt.
[email protected]
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