March 10, 2015, 7:13am
Mushimba estate increases to N$238m
By Werner Menges
THE value of assets in the estate of the late Namibian businessman Aaron Mushimba, who died at the end of August last year, has increased to about N$238 million.
With the value of assets in Mushimba's estate having increased from an initial figure of N$139,7 million, his estate has become one of the biggest Namibian estates ever registered at the Office of the Master of the High Court.
A first liquidation and distribution account in the estate, which is currently lying open for inspection at the Master's office, puts the total value of assets in the estate at N$238,18 million - almost N$100 million more than the initial value of the estate given in a first inventory of assets, which was filed with the Master's office about six months ago.
Mushimba, who was involved in a wide range of business interests that included the fishing industry, farming, catering, real estate and investment after Namibia's independence in 1990, died at the age of 67 in Cape Town on 31 August last year.
In his last will and testament, which Mushimba signed on 17 April last year, he recorded that his wife, Adolphine Mushimba, would be entitled to half of the assets in his estate, since they were married in community of property.
Mushimba, who was a brother-in-law of former President Sam Nujoma, directed that a nephew of his, Daniel Mushimba, had to inherit N$1 million from him, and that the remainder of his estate had to go to a trust, the Mushimba Family Trust, which was created in January 2013.
In the trust documents Mushimba's four children are named as the beneficiaries of the Mushimba Family Trust. The objective of the trust is stated as being to provide for the reasonable necessities of the beneficiaries, “but not for luxuries”. The founding document of the trust describes luxuries as any items, expenses or payments that the trustees of the trust, lawyer Marén de Klerk and chartered accountant Johan Penderis, consider to be “an indulgence rather than a necessity”.
Mushimba also appointed De Klerk as the executor of his will. The first liquidation and distribution account in the estate indicates that De Klerk is due to be paid an executor's fee of about N$8,3 million, of which the calculation is based on the value of the assets in the estate, for handling Mushimba's estate.
With claims against the estate amounting to N$17,4 million, assets with a net value of N$220,7 million were left in the estate to be distributed to Mrs Mushimba, the trust, and Mushimba's nephew.
The assets in the estate include three farms, with a combined value of N$47,3 million, which were transferred into the name of Mrs Mushimba as part of her half of her and her late husband's joint estate.
Mrs Mushimba's share of the estate amounts to N$110,35 million. Except for the farms, she receives a property at Swakopmund with a value of N$6,5 million, shares and member's interests in close corporations with a value of close to N$24,6 million, livestock valued at N$7,4 million, farming implement and vehicles valued at about N$6 million, farming working capital of N$6,1 million, and N$11,7 million in cash.
The Mushimba Family Trust receives assets with a total value of N$109,35 million. These assets include a house in Windhoek's Ludwigsdorf area, valued at N$5,6 million, cash of N$3,56 million, and shares in companies and members' interests in close corporations with a total value of N$100,14 million. Cash and investments account for about N$16,3 million of the value of Mushimba's estate.
Shares and member's interests in Mushimba's name included a 100% interest in the close corporation Katutura Investments, valued at N$59,8 million, a 100% stake in the company Edelweiss Investments 8, which is valued at N$19,3 million, a 100% interest in the close corporation Eris Farming, valued at N$14,8 million, a 33,33% stake in the company Tuapandula Investments, which is valued at N$9,96 million, a 35% share in Independence Catering (Pty) Ltd, valued at N$6,8 million, 100% of the membership in the close corporation Tuakondja Properties, with a value of N$6 million, and all of the shares in the company /Ae //Gams Financial Services, valued at N$5,4 million.
Although Mushimba's estate is now one of the biggest in Namibia's history, it is still surpassed by the fortune that business magnate Werner List, who was the chairman of the Ohlthaver & List group of companies until his death in April 2002, left for his heirs.
The net value of assets in List's estate was N$406,6 million, which would be the equivalent of more than N$700 million currently if the effect of inflation is taken into account. List directed that almost his entire estate should go into a trust, the Werner List Trust, of which his widow, children and stepchildren, and subsequently their descendants, were designated as the beneficiaries.