Chrispin Inambao
18 April 2008
Windhoek — Crispin Makuta Saushini is a bitter man after Bank Windhoek allegedly short-changed him in a deal that went awry depriving him of his livelihood.
He accuses Bank Windhoek of bias after it recently auctioned his garage to redeem two loans amounting to N$472000 in the sums of N$372000 and N$100000.
A motor mechanic by trade, the ex-PLAN combatant who once served as a driver for the Founding Father of the Nation, Dr Sam Nujoma while in exile, was recently relieved of his livelihood Makuta Automobile Service Garage in what he says is a lopsided deal.
The repossession of his garage has not only deprived his family of bread but it has also unceremoniously landed seven workers on the unforgiving streets of Katima Mulilo.
In typical African tradition, he provides for many cousins and for his flesh and blood.
But Bank Windhoek has shot back, saying Saushini breached the terms of agreement though it could not dwell into this saga invoking its 'client confidentiality policy'.
Correspondence indicates the bank sought a High Court order for the execution of his garage to recover a loan of N$549968 jointly owed by him and his wife Mary.
Bank Windhoek in turn accuses him of having "breached" the material term of the said loan and particularly an alleged failure to pay the monthly instalments.
But Saushini denies this saying there is no way he could have fallen into arrears because there was a one-year grace period stipulated in the contract and that he only started operating in March 2006. And even despite his current run-in with the bank in March this year, he offered to pay N$28000 to one of its managers, Pieter van Vuuren.
This money would have covered outstanding 'arrears' for November and December 2007 and for January and February this year but the bank apparently turned this down.
The whole saga started after Saushini applied for a loan to buy tools as operational capital for a garage he wanted to establish on a substantial piece of land that he bought in 2005 for N$101817 using his pension payout from the Government.
He was fortunate to buy the plot for a song in a prime area at the rate of N$9 per square metre as its value has since gone up significantly. The land is now worth over N$600000.
Previously, he was employed at the Government Garage at Katima Mulilo as an artisan and by the time he quit to establish his own garage, he was already an artisan foreman.
After he bought the plot measuring 113.13 square metres, he spent thousands of dollars to clear the area and eventually applied for N$600000 for "equipment and working capital."
But Bank Windhoek only approved a 'loan' of N$372000 on condition he repays this in 15 years at N$4000 monthly and giving the debtor a year's grace period.
Later, on June 23, 2005 several days after the bank approved the 'loan', he apparently received another letter stating the repayments had been changed to N$26000 a month.
The bank changed the initial agreement segmenting it into N$101817 as a commercial loan to be paid over 15 years, N$85000 was structured as a suspensive sales agreement payable over 24 months while N$185183 was the term loan to be repaid over 60 months. He was also granted a separate loan of N$100000 but says he did not receive a cent of that money.
He says though the bank approved the 'loan' it did not give him the money. Instead, it requested him to get quotations for the various tools of his trade that he needed.
In this manner, they bought him a wheel alignment machine, a compressor, a mechanic's toolbox, a wheel-balancing machine and wheel spanners among other tools.
"How could they have kept this money as if they are my father or my relatives, and how is it possible that you advance someone a loan and they you act as the bookkeeper?" asked Saushini, whose garage was auctioned to one bidder at the beginning of this month.
Saushini says he entered into the auto repair knowing the industry is fragmented, highly competitive and that each operator has high capital costs, low margins, a high intensity of competition and high number of competitors resulting in competitive pricing.
He complained that the bank later virtually took over his cheque account as he had to get permission from Van Vuuren, one of the managers for Bank Windhoek, even when he had to make personal transactions to buy spare parts for his garage and to pay his staff.
Saushini says the bank became both the lender and the bookkeeper of his account and he wonders how it is possible for a bank to lend money and to control one's account.
At one stage, Saushini could not even afford salaries, settling his water, electricity and phone bills because he virtually had 'no working capital' despite the bank's loans.
He said he could not even access monies amounting to almost N$90000 that the Government Garage paid into his account for repair services duly rendered.
Saushini says though his garage was sold for N$620000, his piece of land is worth substantially more as Katima Mulilo Town Council and independent land valuators have put the value of the building alone at N$1.4 million and the piece of land at N$700000.
When contacted for comment, Janie Wiese, from marketing and corporate communication department of Bank Windhoek stated that the bank due to it's client confidentiality policy is unable to divulge details to the media of its deal with Saushini.
But she explained that Bank Windhoek's small and medium enterprise (SME) loan facility is a product that is tailor-made to each client's individual needs. Upon the extension of an SME loan to a client, a loan agreement is signed with stipulated terms and conditions.
"The extension of a loan is a partnership with responsibilities for both the bank as well as the client. Should the client not honour the agreement, the Bank is forced to act in accordance with stipulated procedures," said Wiese.
"If there is a breach of contract, then the bank has to take steps if the agreement signed between the bank and the client is not honoured," she added.
When asked to explain how the bank assumed the role of a bookkeeper and not allow Saushini to make transactions on his account, she said: "It's very confidential, sensitive information so I cannot divulge any information on behalf of the client."
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