Huang sues for N$3.7m

Chinese businessman and tax fraud accused Jack Huang is suing trade unionist Petrus Nevonga and former Swapo councillor Christian Itope for more than N$3.7 million, after an Ondangwa supermarket business deal went sour.Huang, who is close friend of President Hage Geingob, is also embroiled in a N$3.5 billion fraud and money-laundering case, which is still before the courts.Nevonga is the long-serving Namibia Public Worker's Union (Napwu) secretary-general, while Itope is a former Ondangwa councillor.In Huang's particulars, filed on 14 June in the Windhoek High Court, he said the three concluded a deal on 27 October 2015 to establish Jinhao Investment CC, trading as Super Foods, at Sun Square Mall in Ondangwa. Huang said the deal was that he would own 40% of the business, while Nevonga and Itope would hold a combined 60% stake.He said the agreement entailed him paying N$3.2 million as a capital investment into the company, while Itope and Nevonga would invest N$4.8 million.Huang said his partners did not have the full amount and he lent them N$1.6 million. He said after six months from the date of the agreement, Nevonga and Itope would pay back N$800 000 interest-free.The remaining N$800 000 which Huang gave them would begin to accumulate interest from the full payment date of the N$3.2 million and N$1.6 million.Huang included annexures in his particulars, including an agreement that Nevonga and Itope would be jointly and severally liable for the loan, as well as the agreement for the establishment of Jinhao Investment.Interestingly, Huang boasts a Namibian identity number on the agreement.Huang, who left the CC on 2 February this year, listed three claims. The first is in respect of the N$1.6 million that he lent to Nevonga and Itope, along with interest of N$416 000, leading to a total of N$2.016 million.With regard to the second claim, Huang says he over-contributed an amount of N$1 254 427.62 to the company, which was due and payable by 31 August 2017. According to the annexures, the company was in a state of chaos. There were several problems with paying suppliers. “We also experienced issues obtaining income to purchase stock; store income could not cover all the operating expenses.” Namibia Beverages had allegedly also dealt with the supermarket as a “cash client, after [they] failed to meet [their] agreement”.Due to the cash-flow challenges, they were “making the majority of purchases from unregistered vendors, resulting in higher VAT rates”. No double-pay for staffThey also, surprisingly, reported challenges with staff, as there were no salary increases and no pension or medical aid. Furthermore, “they [staff] are working on Sundays and public holidays without pay”.In this document, Huang says he was to forward N$300 000 to pay the most urgent outstanding suppliers, which he said he duly did. It also detailed a “breakdown of percentages”, which “showed Mr Huang had over-contributed N$1 254 427.62”.Mention was also made of a frozen Nedbank account and “for now, salaries were paid by Mr Huang. As soon as the bank is unfrozen, Mr Haung will be refunded the amount paid”.The second claim lodged by Huang amounts to N$1 376 734.31, along with interest since August 2017.In his third claim, he asks for his N$300 000, with interest of N$26 000. His full and final demand from Nevonga and Itope totals N$3 718 734.31. Huang also asked for interest of 20% per annum from the date of judgement until full payment is made, and for the costs of the lawsuit to be paid by the defendants.Nevonga and Itope filed their intention to defend the matter and gave notice to the court thereof on 28 June. The matter was referred for mediation by the presiding judge, Shafimana Ueitele, and the first conference was held yesterday. The parties were instructed to conclude the process by 22 October and the matter was postponed to 30 October for a status hearing.Huang is represented by Appolos Shikameni and Kadhila Amoomo appears for Nevonga and Itope. Tax fraudHuang, Tao Huizhong, Julius Laurentius, Zhu Honggang, Zhihua Gua, Hongying Jia, Shuhua Cao, Dadi Li and Ying Zhang were arrested for allegedly having a hand in the N$3.5 billion losses incurred by the finance ministry between 2010 and 2016. Honggang has since passed away, while another suspect, Jinrong Huang, was still at large in June this year.Huang, who granted bail of N$1 million in this matter in February 2017, and is expected to plead, along with the co-accused, next year. YANNA SMITH

Huang sues for N$3.7m

Comments

Namibian Sun 2025-04-30

Please login to leave a comment

Huang sues for N$3.7m

Comments

Namibian Sun 2025-04-30

Please login to leave a comment

Login