Katti risks losing N$2m house in court battle

A N$2,2 million house owned by businessman Knowledge Katti at Walvis Bay could be auctioned because of disputed bills amounting to N$160 000.

These details are part of a case unfolding in the High Court involving a company called

Erf 244 Walvis Bay CC that owns the house at the coastal town where Katti’s mother stays.

Court documents show that Katti’s office manager, Jeremy Hangula, bought a 100% stake in Erf 244 Walvis Bay CC from Marion Bausch, who owned 52,5%, and Patrick Suckley (47,5%) for N$2,2 million in March 2013. This company owned the disputed house.

Well off individuals have over the years used a loophole in the law to dodge paying taxes by buying land through buying shares in companies.

Documents say that after “an oral agreement”, Katti substituted Hangula as the owner of that company in October 2013, his lawyers said, adding that Katti’s 68-year old mother Fransina stays at the house.

Katti, known as a middleman in oil exploration deals, later found out that the company he had bought had outstanding unpaid bills.

One of Erf 244 Walvis Bay CC’s creditors before Katti bought it was a company called Rouco Auto Manufacturers. That company is now demanding that Katti pays around N$160 000 which Rouco is owed by previous Erf 244 owners, or risk losing the N$2,2 million house on auction.

Officials close to this case said Erf 244 Walvis Bay CC rented construction equipment, but the machines were never returned.

Rouco Auto Manufacturers’ legal representatives, Jan Olivier & Co, wrote to Katti’s company on 28 April 2017.

“Our client has an unsatisfied judgement against Erf 244 Construction CC in the capital sum of N$159 895 with interest and costs,” Jan Olivier said.

He asked the company to provide them with a list of all its assets and addresses.

“Should we not hear from you within four days from date hereof, we shall proceed to apply for the immovable property of Erf 244 Construction CC, namely erf 244 Walvis Bay, to be declared executable,” Olivier said.

Katti’s lawyer, Richard Metcalfe, responded to Olivier on 11 May 2017 by dismissing his client’s links to previous transactions.

“Neither Katti in his personal capacity nor in his capacity as the sole member of Erf 244 Walvis Bay CC has ever had any dealings with Rouco Auto Manufacturers,” he stated. He asked Olivier to provide proof of claims and other details relating to Rouco Auto.

Metcalfe said in his affidavit filed at the High Court that Katti did not know there was a court case against him until 8 May 2017. This is slightly over a week after Olivier had written his company a letter.

Metcalfe accused Olivier in the same letter of targeting the wrong entity since Katti never owned a company called Erf 244 Construction CC.

Olivier, however, said Erf 244 Walvis Bay CC previously conducted its business as Erf 244 Construction CC. In fact, people familiar with this case said the former owner admitted this in the High Court.

Metcalfe also accused Olivier of extortion in the court papers because of his constant demand for money for his client. Olivier is set to respond to the affidavit next week.

Metcalfe said it will be shameful to evict Katti’s mother because of the disputed debt.

“As an elderly woman of 68 years, and given the circumstances of this matter, to evict her from her home which has received extensive renovations since its purchase in 2013 to accommodate her frail age evokes a sense of shame and shock,” the coastal lawyer said.

Questions are now being asked whether Katti was told in 2013 that the company he was buying owed another entity.

People familiar with this case said there is a chance that Katti did not know that the company he was buying in 2013 owed other companies. If that is the case, Katti will have to demand that the previous owners or the lawyers who facilitated the transaction pay the debt.