TransNamib has approached the High Court seeking to terminate a N$5.1 million contract it signed with Alliance Media six years ago after the latter failed to pay for advertising space as agreed.
The national railway operator told a reconciliation hearing at the Windhoek High court on Tuesday that it wants an order to terminate the contract it entered into on 1 March 2013 with Alliance Media and was extended for a further five-year period on 29 July 2016.
Under the contract, Alliance Media was supposed to pay N$5.1 million for advertising spaces belonging to TransNamib. However, the media company is alleged to have failed to pay the price, prompting TransNamib to institute legal proceedings.
The two companies later agreed to not proceed with the litigation process and to solve the matter in a settlement agreement after Judge Esi Schimming-Chase referred the matter for mediation.
TransNamib is also demanding that Alliance Media vacate from its premises as well as to remove advertising materials from its properties.
In its defence, Alliance Media said TransNamib failed to give it the tenancy letters they needed for submission to the Windhoek municipality in order to apply for a licence for outdoor advertising.
They argue that TransNamib wrote to the City of Windhoek on 15 December 2018, suggesting that there was no lease agreement between them and Alliance Media.
Alliance Media was expected to pay $5.1 million in portions of N$255 000 quarterly. However, should the company earn more than N$255 000, it was liable to pay 45% of the net earnings. But where the net advertising revenue is less than N$255 000, there would be no additional payment.
