Namcor’s legal war with Mulunga costs N$6.5 million

National oil company Namcor has spent close to N$6.5 million in legal fees in its protracted legal battle with former managing director Immanuel Mulunga.The dispute, which has dragged on since Mulunga’s suspension in April 2023 on allegations of fraud and breach of contract, has seen the parastatal burn through millions in public funds in an attempt to defend its actions.Figures seen by Namibian Sun show that as of January this year, Namcor had racked up N$6.1 million in legal expenses related to the case. Over the last five months, that figure has grown by roughly another N$400 000, bringing the total legal spend to N$6.5 million.This revelation comes shortly after Mulunga secured a victory at the Labour Court a fortnight ago, where he challenged his dismissal and won.The new Namcor board, chaired by Florentia Amuenje, oversaw his dismissal. Mulunga was fired on 8 August 2024 and subsequently filed a case of unfair dismissal. Namcor, in turn, lodged a counterclaim two months later, accusing him of discrimination and breach of contract.Name cleared However, this month, on 5 June, arbitrator Moses Mazambo ruled in favour of Mulunga and dismissed Namcor’s case. He also ordered the parastatal to pay N$4 000 in costs.“In the premise, this tribunal hereby orders the following: the applicant’s points in limine are hereby upheld; that, the dispute referred to the Labour Commissioner dated 8th November 2024 by the respondent is hereby dismissed,” Mazambo wrote in his ruling.While Namcor declined to comment directly on the ruling, company spokesperson Utaara Hoveka said the parastatal would act in its best interests moving forward.“Until such time that this matter reaches conclusion, we regard it as sub judice and refrain from commenting on it in detail at this stage,” Hoveka said.“However, be rest assured that Namcor will consider all available options at its disposal and choose what is in the best interest of the company and the country at large," he added.Mounting legal costsNamcor has retained a legal team comprising Clive Kavendji, advocate Gerson Narib and senior advocate Raymond Heathcote to handle the matter.With the case still ongoing and the possibility of further court battles looming – especially if Namcor refuses to pay Mulunga a settlement – the legal bill is expected to rise even further.Mulunga, who was reappointed as Namcor’s managing director in October 2020 for a second term, had just 10 months left on his contract at the time of his dismissal. Should a settlement be based on the remaining value of his contract, he stands to be paid around N$2 million.The initial suspension in April 2023 stemmed from a controversial transfer of N$123 million from Namcor’s accounts to Sungara Energies, a London-based joint venture formed to acquire oil assets in Angola from Sonangol, that country’s state-owned petroleum company.The transfer, which Namcor’s board later said was done without its prior approval, raised alarm over internal governance, transparency and accountability at the parastatal.Although the Anti-Corruption Commission (ACC) subsequently investigated the transaction and, in July 2023, cleared Mulunga of any criminal wrongdoing, Namcor still pursued disciplinary action against him, culminating in his dismissal.Fuel debts and lost oil deals Mulunga’s firing was also linked to a separate matter: the unauthorised N$50 million acquisition of assets from Enercon Namibia, a company which had a long-standing fuel supply contract with the Namibian Defence Force. Enercon was placed under provisional liquidation last week following an application by Namcor over unpaid fuel debts totalling more than N$114 million.The High Court issued a provisional liquidation order, placing Enercon Namibia and its affiliate Erongo Petroleum under the administration of the Master of the High Court. The debts stem from non-payment for fuel supply agreements between the companies and Namcor.Meanwhile, Namibian Sun reported yesterday that the Angolan oil deal, initially worth N$8 billion and backed by a N$524 million deposit, has now collapsed.Sources said Angola’s Sonangol pulled the plug on the transaction due to nearly four years of delays and persistent negative media coverage. The collapse of the deal adds further scrutiny to Namcor’s decision-making and raises questions about its internal leadership.Despite the setbacks, Namcor acting managing director Victoria Sibeya did not respond to questions sent to her by this publication last week.Millions out of pocketFor his part, Mulunga said he has spent more than N$2 million in legal fees to defend himself against his former employer.“It’s unfortunate that I had to go through this experience when there was no evidence of wrongdoing from the start,” he said. “Now I have been cleared by the ACC, the internal disciplinary hearing and the labour commissioner.”Mulunga added that he hopes the matter can soon be resolved so that both he and Namcor can move on.“I’m looking forward to the conclusion of this matter with Namcor so that I can go on with my life. It’s in the interest of both parties to do so,” he said.Mulunga served as Namcor’s managing director for eight years. Prior to that, he was Namibia’s petroleum commissioner in the mines and energy ministry.

Namcor’s legal war with Mulunga costs N$6.5 million

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Namibian Sun 2025-06-18

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Namcor’s legal war with Mulunga costs N$6.5 million

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Namibian Sun 2025-06-18

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