Namibia: Agribank seizes fruit to recover debt

Agribank is on a serious drive to recover loans awarded to grape growers at the Orange River Irrigation Project after it took control of the farmers’ entire harvests to recover about N$1.2 million owed by farmers. Agribank’s Sales, Services and Credit Senior Manager, Shali Shindume, made it categorically clear that the bank’s main concern is to recover its money. “The farmers never repaid the loans.We therefore confiscated the grapes because they were listed as security should the farmers fail to settle their accounts,” he said when asked about Agribank’s standoff with farmers. He explained that the bank would sell the grapes to the highest bidder. Proceeds will then be divided equally between the bank and the farmers.

Shindume indicated that the farmers were not in a position to request for additional funding because their accounts were already in arrears. According to a court affidavit: “Agribank is ordered to retain 50 percent of the gross proceeds of the sale of the grapes so attached and to pay over to the respective respondents, 50 percent of the proceeds of the said sales.” The official document also ordered the farmers to hand over their keys to the cooling facilities to the Ministry of Agriculture,Water and Forestry. The farmers were also prevented from entering the cooling facility, take possession, sell, dispose or remove the grapes from the cooling facility at Aussenkehr.

Shindume also revealed that the bank stopped a deal between the farmers and a Dutch buyer because the offer was relatively low. The bank is however keeping its ears wide open on the Ministry of Agriculture,Water and Forestry’s plans to evict the grape farmers, a move which could cost the bank millions. “If they are evicted, then where will we get our money?, it will be very difficult to trace them,” said Shindume. The Ministry of Agriculture,Water and Forestry last year decided to evict the farmers after they refused to sign an agreement acknowledging Cool Fresh as their service provider. The bank would however listen to any offers from buyers in order to get rid of the merchandise.

Source: newera.com.na