Adjovi says he kept his end of the bargain

ELLANIE SMITWINDHOEKErnst Adjovi’s Mundial Telecom Sarl says failure to host the Kora All Africa Music Awards ceremony in Namibia did not amount to a breach of the agreement it had with the Namibia Tourism Board (NTB).This was stated in Mundial’s heads of argument that were filed on Friday in the matter in which the NTB is suing the owners of the Kora Music Awards in an attempt to recover the more than N$23.5 million it had paid to market Namibia.The matter dates back to September 2016 when the NTB first sued Mundial Telecom Sarl for N$23.5 million (plus 20% interest) which it had paid for the purchase of a tourism marketing package which it never received.Mundial Telecom owns the rights to host the Kora Awards and it resolved to host the Kora Awards Ceremony in Namibia on 20 March 2016.In terms of an agreement concluded between the NTB and Mundial Telecom on 4 December 2015, the company undertook to promote Namibia as a tourism destination through television clips that were to be shown in African countries participating in the Kora awards.However, Mundial states in its heads of argument that NTB had to pay it US$1.5 million by 10 December 2015 and if it had not secured US$4 million by 11 December 2015, there would be no Kora music award ceremony held in Namibia.“There was no US$4 million secured by 11 December 2015 and therefore no Kora Awards.”It had emerged during the trial that the Namibian government, through the tourism ministry, had entered into an agreement with Mundial Telecom Sarl to hold the Kora Music Awards in Namibia, which clearly stipulated that this amount must be paid to the company by 11 December 2015.According to the agreement, should that amount not be paid by that date to Mundial, the event would not be held in Namibia and the parties would have no further obligations to one another.The agreement also had a clause stating that Mundial Telecom was to repay the US$1.5 million it was to receive from the NTB for the Namibian tourism promotional campaign within 60 days if the awards ceremony did not take place in Namibia.NTB was to pay the US$1.5 million for a tourism promotional package to the company by 10 December 2015.However, that deadline was not honoured, and the money was paid to Mundial Telecom in instalments of N$5 million each on 22 and 23 December 2015 and on 7 January 2016, followed by a last payment of N$8.5 million on 17 February 2016.Mundail further said that NTB makes much of the fact that the company’s witnesses did not testify.However, Mundail points out that the court heard and refused an application for video-link evidence.“The agreement and its terms were admitted. What NTB misses is the effect of the pre-estimate of damages clause. It also misses the effect of a failure to give notice of breach prior to claiming damages,” Mundail argues.‘Breach of contract’It further denies that NTB complied with the terms of the agreement.Mundial says a claim for contractual damages was secondary to a claim for specific performance.“NTB did not comply. It failed to pay on time, and it failed to give notice of breach. Mundial gave notice, and thereafter cancelled the agreement.”It further pleads that it incurred reasonable expenses.“Evidence to this effect was disallowed, despite NTB’s witness testifying to the defendant’s reliance upon a US$1.6m expense incurred.”Mundial also denies NTB’s entitlement to claim as damages the amount paid as consideration for the tourism promotion package.“The non-happening of the Kora awards is clearly not a breach of the agreement. That eventuality is catered for under the reimbursement provisions. But that is not the claim made by NTB.”It further adds that the failure to provide the tourism promotion package resorts under the breach provisions, but NTB can only claim damages upon non-compliance with a breach notice.The case has been postponed for closing submissions to 31 August.

Adjovi says he kept his end of the bargain

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Namibian Sun 2025-04-04

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Adjovi says he kept his end of the bargain

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Namibian Sun 2025-04-04

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