Multi-million mask deal goes sour

20 April 2021 | Crime

Windhoek • [email protected]

A Chinese owned tobacco company are suing to reclaim more than N$6 million they say was lost when a deal to buy 440 000 face masks in February last year went sour.
Namibia Oriental Tobacco CC in November sued Mickir Supplies CC in the Windhoek High Court, demanding payment of N$6 551 760, plus interest and the cancellation of the mask deal.
The tobacco company is majority Chinese owned, with Swapo’s coordinator for the Oshikoto region, Armas Amukwiyu a co-owner. Earlier this year it was reported in national media that the company’s hope to kickstart a multi-billion Namibia dollar tobacco plantation in the Zambezi region was dead in the water after it refused to agree with conditions set by Cabinet.
Mickir is defending the matter, claiming that they are suing a South African company which sold them 30 000 fake face masks for which they paid more than N$4 million in June last year.
They say the purchase of the masks was part of an agreement with Namibia Oriental Tobacco and that they are not in breach of the contract as both parties carried equal risks in the business venture.
Papers submitted to court by Oriental Tobacco state that on 10 February, Mickir Supplies – represented by Trevor Petersen – agreed to procure 440 000 Ansell Sandel N95 face masks for them. Oriental was represented by Lou Ming.
Court documents state that the agreement, which was partly written and partly oral, stipulated that Mickir would deliver 420 000 masks at a cost of close to N$9 million. A few days later Ming and Petersen concluded another oral deal in which they agreed that 20 000 more masks should be procured for an additional N$423 2000.
The masks would be delivered before 24 February to an address in China, and the tobacco firm would pay a N$500 000 security deposit. They also advanced just over N$6 million to Mickir to help with the order.
Namibia Oriental Tobacco now claims that Mickir is in breach of the contract, after it failed to “deliver the 440 000 masks on or before 24 February or at all”.
They also claim that by time the lawsuit was filed on 24 November 2020, no masks had been delivered.

Fake masks
In their plea, filed in February this year, Mickir Supplies admits they were paid N$6.5 million but argue that their first order in South Africa fell flat, after the company informed them they could no longer supply the masks. Although the company had been paid, they fully refunded Mickir.
Mickir says Oriental Tobacco was made aware of the situation, and in response said they did not want the money back. Instead, they asked that “due to the high demand for masks in Namibia, [Mickir] should procure alternative masks from an alternative supplier and assist the plaintiff in selling the masks in Namibia.”
Mickir says a new deal was made, and that the parties realised that mask prices had shot up steeply between February and May.
This deal, finalised in June 2020 according to Mickir and also made orally, stipulated that Oriental would contribute capital for the procurement of masks. Mickir would order the masks and once delivered, they would attend to the sale of the masks to the public.
“The proceeds generated from the sales, after the deduction of all costs incurred in respect of the procurement of the masks, would be shared between the parties 50/50.”
Mickir proceeded to order 70 000 masks at a price of just over N$4 million from another South Africa company, Mining World Investments. Mickir claims that Mining World however only delivered 29 360 masks at the end of August last year.
Still, Mickir says they paid over N$600 000 to Oriental Tobacco at this stage.
Then, in January, they realised the masks were “counterfeit masks, which resulted in [us] being unable to sell the masks to the public.”
Mickir has now sued Mining World Investments in South Africa, and argues that considering the new deal and the shared risks, the company did not breach the initial agreement.
Yesterday, the case was postponed to 10 May for a case management conference by High Court judge Herman Oosthuizen.
Mickir is represented in court by Francois Erasmus while Astrid Feris of Sisa Namandje & Co is acting on behalf of Oriental.

Similar News


Community policing essential – Ndeitunga

5 days ago - 27 July 2021 | Crime

Nampol’s Lieutenant-General Sebastian Ndeitunga encouraged community policing in the informal settlements, urging these communities to form neighbourhood watch teams to curb crime in their areas.Ndeitunga...

NamPol to face GBV head on

1 week ago - 25 July 2021 | Crime

NamPol on Friday launched its Gender-Based Violence (GBV) National Action Plan aimed at to enhanced policing efforts in a bid to improve responsiveness, expedite investigations...

Immigration officer arrested

1 week ago - 19 July 2021 | Crime

A 38-year-old Namibian immigration officer employed at the Trans-Kalahari border post in the Omaheke region was arrested on Friday for allegedly corruptly using his office...

No looting reported

2 weeks ago - 18 July 2021 | Crime

No incident of looting or attempts were observed in Namibia so far.This according to Nampol Deputy Commissioner Kauna Shikwambi, who reacted on Sunday to the...

Millions in illicit drugs destroyed

2 weeks ago - 16 July 2021 | Crime

The Namibian Police Force (NamPol) on Thursday destroyed illicit drugs worth N$9 709 333 at the NamPol Forensic Science Institute.In a media statement, NamPol said...

Human trafficking: Namibia retains ranking

2 weeks ago - 15 July 2021 | Crime

Namibia retained its status as a Tier 1 country in the 2021 Trafficking in Persons (TIP) report for the second consecutive year for prohibiting severe...

eWallet obituary scams on the rise

3 weeks ago - 08 July 2021 | Crime

FNB Namibia is warning the public to be aware of the latest eWallet scam which is on the rise targeting bereaved families who have lost...

Dozens arrested after cemetery ruckus

3 weeks ago - 05 July 2021 | Crime

Windhoek • [email protected] Namibian police on Saturday arrested 27 men at a house in Khomasdal after they allegedly attended a funeral at Gammams Cemetery in...

Watch out for scammers, NamPol warns

1 month - 17 June 2021 | Crime

Namibian Police Force (NamPol) spokesperson, Deputy Commissioner Kauna Shikwambi, cautioned government employees to be on the alert for a scam operated by people pretending to...

GBV prevention in the spotlight

1 month - 10 June 2021 | Crime

The Ministry of Gender Equality, Poverty Eradication and Social Welfare on Wednesday began with three days of training for its male staff members and members...

Latest News

Supreme Court to review 50-year...

2 days ago - 30 July 2021 | Justice

Windhoek • [email protected] man serving a 50-year prison sentence for the panga murders of a Russian couple 13-years ago has been granted leave to appeal...


2 days ago - 30 July 2021 | Health

The office of First Lady Monica Geingos in collaboration with the Ministry of Health and Social Services has set up a mobile psychosocial support centre...

WCH field hospital commissioned

2 days ago - 30 July 2021 | Health

A new 70-bed capacity field hospital for Covid-19 patients at the Windhoek Central Hospital was commissioned on Thursday.The facility is an initiative by the Namibia...

The Youth: Living between faith...

3 days ago - 29 July 2021 | Opinion

Windhoek • Pastor Lyndon van WykCovid-19 has added to the complexity of problems the youth face and that can cause extreme distress and disorder. This...

What you need to know...

3 days ago - 29 July 2021 | Life Style

“The last thing you should worry about when grieving the loss of a loved one is reading the terms and conditions of your funeral policy...

Socks n Soup for cancer...

3 days ago - 29 July 2021 | Social Issues

It’s Socks n Soup Saturday with the Cancer Association of Namibia and MegaCentre in Kleine Kuppe this Saturday (31 July 2021) from 08:00 to noon.Regular...

Winter warmers for paediatric ward

3 days ago - 29 July 2021 | Social Issues

A hot water urn, a glucometer and test strip kit, bathing necessities, winter clothing, diapers and wipes, toys and children’s books were donated to the...

The beat at their feet

3 days ago - 29 July 2021 | Art and Entertainment

Brass instruments consisting of trumpets, trombones, tubas, a marching band drum set, an euphonium and music stands worth N$110 735 where donated to the QueenZab...

Sioka’s contempt of court battle...

4 days ago - 28 July 2021 | Justice

Windhoek • [email protected] and child welfare minister Doreen Sioka continues to lock horns with Ombudsman John Walters over a contempt of court order related to...

Load More