DBN seeks to attach houses of Enercon owners
Development bank wants its N$29m back
August 26 signed on as an unlimited surety in 2015 for Enercon's second loan from DBN - worth N$18 million.
The Development Bank of Namibia (DBN) is seeking to have three Windhoek properties declared executable in a major legal move to recover nearly N$29 million from Enercon Namibia (Pty) Ltd and a group of its directors and associates.
The lawsuit, filed in the High Court this month, is centred on multiple breaches of loan agreements dating as far back as 2011, and names eight defendants who either signed as co-principal debtors or pledged security for the defaulted loans. In addition to the loans, DBN is also seeking interest, legal costs, and rectification of company records after discovering a mismatch in Enercon’s official registration number.
At the heart of the DBN’s legal push is its request for the court to authorise the sale in execution of three high-value sectional title units in Windhoek, which had been mortgaged as collateral. These include Unit 1 in the Brabant complex in Hochlandpark (222 square metres), and Units 15 and 16 in the City View Apartments in Windhoek West (128 sqm and 111 sqm respectively). They are owned by Bonsec Investments, an entity belonging to brothers Peter and Malakia Elindi.
DBN says it has no reasonable hope of recovering the outstanding loan amounts - currently standing at N$19.4 million for one commercial loan and N$9.4 million for a property development loan - without executing on the mortgaged properties. It has already served formal notice on the defendants and any tenants currently occupying the units, as required under Rule 108 of the High Court.
Key players under scrutiny
Among those potentially losing assets is also one Rodrigo Antero Pereira Pimenta, who signed unlimited suretyship for the earliest of three DBN loans to Enercon - a N$2.8 million facility granted in 2011 to finance petroleum product procurement and fuel management systems. The court documents indicate that Pimenta also provided his personal address in Ludwigsdorf, Windhoek, as his legal point of contact.
Also cited is August 26 Holding Company (Pty) Ltd, the controversial commercial arm of the Namibian Defence Force (NDF). August 26, which currently owns 25% in Enercon, signed on as an unlimited surety in 2015 for Enercon’s second loan - a N$18.1 million credit facility meant for scaling up operations. At the time, August 26 was represented by one of its authorised officials, though the court papers do not disclose the signatory by name.
Enercon’s directors, the Elindi brothers, are also named as co-defendants, having signed both as company representatives and in their personal capacities as sureties. They are joined in the lawsuit by a network of close corporations - Bonsec Investments 174 and 175 CC, and Wholesale Purchasing CC - all of which pledged real estate and life insurance as security.
According to court filings, the loans were backed by several layers of collateral: not just mortgage bonds over the residential units, but also cessions of life policies worth N$8 million each, investment account pledges, and continuing covering bonds over the targeted properties. Despite this, DBN claims the defendants have not made instalment payments since as early as October 2022 for the property loan, and February 2024 for the commercial loan.
“Despite repeated demands, the defendants have failed to regularise their arrears or present viable alternatives to settle the debt,” the DBN's legal team stated in their application. “The properties stand as the only remaining security with recoverable value.”
Registration error adds administrative twist
In addition to the financial claims, DBN is asking the court to rectify a long-standing administrative error involving Enercon’s registration number. The loan agreements refer to company registration number 2013/0179 - a number which actually belongs to an unrelated entity, Macon Transport (Pty) Ltd.
Enercon’s correct registration number is 2009/0110, and DBN says the mix-up occurred due to an error on the part of the Business and Intellectual Property Authority (BIPA) when issuing a certificate of name change. The bank now seeks an order compelling BIPA to amend the records and issue corrected company documents.
In total, DBN is asking the High Court to grant judgment against Enercon and its associated parties in the amount of N$28,883,752.74. It also seeks interest at the prime rate plus 3%, an additional 2% penalty on overdue amounts, and an order to have the three residential units sold to recoup the debt.
No formal responses had been filed by the defendants at the time of publication.
Liquidation fears
DBN faces uncertainty over how it will recoup its funds amid ongoing liquidation proceedings against Enercon, following an application brought by Namcor Trading and Distribution – a subsidiary of state oil company, Namcor.
In a ruling delivered last week in the Windhoek High Court, Deputy Judge President Shafimana Ueitele provisionally ordered the winding up of Enercon and the close corporation Erongo Petroleum. By November 2023, the two entities owed more than N$381 million to Namcor Petroleum Trading and Distribution.
Namcor Petroleum Trading and Distribution initiated the liquidation process after both Enercon Namibia and Erongo Petroleum failed to settle their debts.
Erongo Petroleum’s sole member is Austin Elindi, who also serves as a director and shareholder of Enercon Namibia.
The lawsuit, filed in the High Court this month, is centred on multiple breaches of loan agreements dating as far back as 2011, and names eight defendants who either signed as co-principal debtors or pledged security for the defaulted loans. In addition to the loans, DBN is also seeking interest, legal costs, and rectification of company records after discovering a mismatch in Enercon’s official registration number.
At the heart of the DBN’s legal push is its request for the court to authorise the sale in execution of three high-value sectional title units in Windhoek, which had been mortgaged as collateral. These include Unit 1 in the Brabant complex in Hochlandpark (222 square metres), and Units 15 and 16 in the City View Apartments in Windhoek West (128 sqm and 111 sqm respectively). They are owned by Bonsec Investments, an entity belonging to brothers Peter and Malakia Elindi.
DBN says it has no reasonable hope of recovering the outstanding loan amounts - currently standing at N$19.4 million for one commercial loan and N$9.4 million for a property development loan - without executing on the mortgaged properties. It has already served formal notice on the defendants and any tenants currently occupying the units, as required under Rule 108 of the High Court.
Key players under scrutiny
Among those potentially losing assets is also one Rodrigo Antero Pereira Pimenta, who signed unlimited suretyship for the earliest of three DBN loans to Enercon - a N$2.8 million facility granted in 2011 to finance petroleum product procurement and fuel management systems. The court documents indicate that Pimenta also provided his personal address in Ludwigsdorf, Windhoek, as his legal point of contact.
Also cited is August 26 Holding Company (Pty) Ltd, the controversial commercial arm of the Namibian Defence Force (NDF). August 26, which currently owns 25% in Enercon, signed on as an unlimited surety in 2015 for Enercon’s second loan - a N$18.1 million credit facility meant for scaling up operations. At the time, August 26 was represented by one of its authorised officials, though the court papers do not disclose the signatory by name.
Enercon’s directors, the Elindi brothers, are also named as co-defendants, having signed both as company representatives and in their personal capacities as sureties. They are joined in the lawsuit by a network of close corporations - Bonsec Investments 174 and 175 CC, and Wholesale Purchasing CC - all of which pledged real estate and life insurance as security.
According to court filings, the loans were backed by several layers of collateral: not just mortgage bonds over the residential units, but also cessions of life policies worth N$8 million each, investment account pledges, and continuing covering bonds over the targeted properties. Despite this, DBN claims the defendants have not made instalment payments since as early as October 2022 for the property loan, and February 2024 for the commercial loan.
“Despite repeated demands, the defendants have failed to regularise their arrears or present viable alternatives to settle the debt,” the DBN's legal team stated in their application. “The properties stand as the only remaining security with recoverable value.”
Registration error adds administrative twist
In addition to the financial claims, DBN is asking the court to rectify a long-standing administrative error involving Enercon’s registration number. The loan agreements refer to company registration number 2013/0179 - a number which actually belongs to an unrelated entity, Macon Transport (Pty) Ltd.
Enercon’s correct registration number is 2009/0110, and DBN says the mix-up occurred due to an error on the part of the Business and Intellectual Property Authority (BIPA) when issuing a certificate of name change. The bank now seeks an order compelling BIPA to amend the records and issue corrected company documents.
In total, DBN is asking the High Court to grant judgment against Enercon and its associated parties in the amount of N$28,883,752.74. It also seeks interest at the prime rate plus 3%, an additional 2% penalty on overdue amounts, and an order to have the three residential units sold to recoup the debt.
No formal responses had been filed by the defendants at the time of publication.
Liquidation fears
DBN faces uncertainty over how it will recoup its funds amid ongoing liquidation proceedings against Enercon, following an application brought by Namcor Trading and Distribution – a subsidiary of state oil company, Namcor.
In a ruling delivered last week in the Windhoek High Court, Deputy Judge President Shafimana Ueitele provisionally ordered the winding up of Enercon and the close corporation Erongo Petroleum. By November 2023, the two entities owed more than N$381 million to Namcor Petroleum Trading and Distribution.
Namcor Petroleum Trading and Distribution initiated the liquidation process after both Enercon Namibia and Erongo Petroleum failed to settle their debts.
Erongo Petroleum’s sole member is Austin Elindi, who also serves as a director and shareholder of Enercon Namibia.
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