Usakos SMEs take on TransNamib

A GROUP of SMEs renting TransNamib’s property at Usakos intends to sue the transport utility for breach of contract.

This came after TransNamib allegedly cut the electricity supply to their businesses.

About 10 different SMEs are operating on the property, some of which have been renting from TransNamib for over a decade.

Civil consultant for the group, Michael Moses, told The Namibian TransNamib cut the electricity supply in February 2019.

The SMEs were forced to buy or rent generators and spend about N$350 a day on fuel.

They also pay for their own water.

“They are running at a loss and hold TransNamib responsible for breach of contract and financial damage to their businesses. They loyally pay their rent and want to pay for electricity, but to date they have not been told what to pay. They have also never been informed of their debt, and they have often approached TransNamib about the matter, but nothing has come of it,” Moses said.

The lease agreements entered into between TransNamib Holdings and the SMEs state that the lessees will be responsible for the payment of water and electricity at the end of each month “upon receipt of a written account from the lessor reflecting the amount payable . . .”.

The SMEs claim they have never received an account from TransNamib reflecting their electricity bill, neither are there any submetres installed at the premises to determine the separate SMEs’ usage.

The bill is said to be between N$200 000 and N$300 000 and is gaining interest.

“I have been here for 13 years and never missed the rent. Suddenly the power was off and I could not operate properly. This is my only income, and I have a family of 14 and five employees,” SME operator Festus Ngeno said.

TransNamib chief executive officer Johny Smith yesterday would not reveal the debt amount, stating it is confidential.

He said this debt is historical and was accrued over a number of years.

He said with the appointment of the new CEO and board of directors, TransNamib is in the process of rectifying this history.

Smith said tenants have been billed for their actual electricity consumption.

“TransNamib cannot subsidise tenants’ utilities consumption and has, as a sign of good faith and commitment towards its relationship with its tenants, engaged in negotiations for repayment of the arrears with the regional electricity utility, ErongoRED. In respect to the rental income, TransNamib is managing the collection of rent according to our set processes,” he said. The CEO said the previous lease agreement for the property had lapsed and there is no agreement in place currently, hence a breach of contract does not apply.

“Pending successful negotiations pertaining to the arrears by the tenants, new lease agreements may be entered into,” he said.