Sostenus Wilherm
A contractual dispute between Manani Investments CC and August 26 Construction (Pty) Ltd over nearly N$800 000 in unpaid construction work has been referred to court-connected mediation by the High Court, in a move aimed at resolving the matter without proceeding to a full trial.
High Court judge Shafimana Ueitele on Thursday ordered the parties to participate in an alternative dispute resolution (ADR) process after considering the pleadings and documents filed in the matter.
The mediation will be chaired by accredited mediator Richard Frankle and is scheduled to take place at the High Court in Windhoek on 29 July 2026. Should additional sessions be required, they will be held on dates determined during the process.
Ueitele further ordered that the mediation must be concluded by 12 August 2026, after which the mediator will submit a report to the court.
The matter has been postponed to 8 September 2026 for a status hearing to record the outcome of the mediation and, if successful, to make the necessary court orders.
According to the court, both parties must either attend the mediation personally or be represented by individuals with full authority to negotiate and conclude a settlement.
The Manani Investments CC will be represented by legal practitioner Ileni Velikoshi, while the August 26 Construction (Pty) Ltd will be represented by Taimi Iileka-Amupanda.
The dispute stems from a construction agreement concluded on 18 April 2023, under which Manani Investments was appointed by August 26 Construction as the main works subcontractor for the construction of classrooms and ablution blocks at three schools in the Ohangwena Region.
The projects involved Nafidi School, Olivia Nakale Primary School, and Omuuva Mutilifa Primary School, with a combined contract value of N$5.56 million, inclusive of VAT.
According to the particulars of claim filed before the High Court, the parties agreed that construction would commence on 1 May 2023 and be completed by 31 July 2023, although the plaintiff says the project experienced delays before construction could begin.
Manani Investments claims it fulfilled all its contractual obligations and completed the construction works in accordance with the specifications provided by the ministry of works and transport for classroom and ablution facilities.
The company further states that the completed buildings were handed over to the respective school principals on 8 January 2024, allowing learners and teachers to begin using the facilities.
The court document indicated that August 26 Construction did not raise any complaints regarding defective workmanship or incomplete construction after taking possession of the buildings.
The Manani Investments argues that the contract provided for a one-year retention period, during which the defendant could request remedial work if defects emerged. However, it alleges that no such requests were ever made.
Court documents state that after completing the works, Manani Investments submitted invoices totalling N$498 487.21 in January 2024. The invoices excluded the retention amount of N$294 764.29, which became payable after the one-year retention period expired.
On 13 January 2025, the Manani Investments submitted its final invoice, including the retention amount, bringing the total outstanding amount claimed to N$793 251.50.
It alleges that despite completing the project and complying with the agreement, August 26 Construction has “failed, refused and/or neglected” to settle the outstanding amount.
According to the particulars of claim, the company, through its legal representatives, formally demanded payment on 30 January 2025, but the defendant allegedly failed to honour the demand.
Manani Investments is therefore seeking payment of N$793 251.50, interest at the prescribed rate of 20% annum from the date of demand until final payment, as well as legal costs.
In referring the matter to mediation, the court outlined strict conditions governing the ADR process, including confidentiality of all discussions and settlement proposals.
The order states that the mediator will serve only as a neutral facilitator and will not determine who is right or wrong, nor provide legal advice to either party.
The court also emphasised that all written and oral communications made during mediation will remain confidential and may not be used in subsequent legal proceedings unless both parties agree otherwise or a settlement agreement is reached.
