Is 'untouchable' August 26 Holdings a conduit for looting?

August 26 Holdings, long criticised as an opaque and "untouchable" taxpayer-funded entity, has quietly concluded an internal probe into its CEO Ndajoina Shalumbu over a controversial N$8 million spare part payment – reaching a "mutual agreement" that saw him resign without further consequences.Shalumbu was suspended in December 2024 after allegations surfaced that he pressured staff at Windhoeker Maschinenfabrik (WMF) – a subsidiary of August 26 Holdings – to inflate an invoice for a single spare part. The incident was first exposed by Affirmative Repositioning (AR) leader Job Amupanda.Internal correspondence seen by Namibian Sun showed WMF managing director Petrus Anton and finance executive Anna Max accusing Shalumbu of instructing them to fabricate a quotation and add fictitious parts to justify the inflated amount.“You came to our offices after sending the attached email to instruct my people to fabricate a quote that we did not have,” Anton wrote in a letter dated 20 November 2024. “This, in my opinion, is unethical.”Yet this week, board chair Brigadier General Fillimon Shafashike confirmed the case had been closed.“I hereby confirm that Mr Ndajoina Shalumbu has voluntarily resigned as CEO of August 26 Holdings following a mutual agreement with the board during the internal investigation,” he said, without revealing the probe’s findings.“The matter has now been concluded. Throughout the process, the board ensured due diligence and fairness, seeking extensive independent legal advice.”Links to a wider scandalThis development comes amid ongoing fallout from the Enercon-Namcor fuel scandal. August 26 Logistics, a subsidiary of August 26 Holdings, is entangled in that case, which has led to corruption, fraud and racketeering charges against multiple people.August 26 Holdings owns 25% of Enercon Namibia, which amassed over N$114 million in unpaid fuel debts to Namcor. Enercon also received N$53 million for fuel infrastructure that Namcor later claimed was already state-owned. Despite months of non-delivery, the defence ministry controversially paid Enercon N$60 million in a settlement tied to a “devil’s clause” in the contract.None of August 26 Holdings’ executives have been charged.A history of secrecy Parliamentarians have long accused August 26 Holdings of operating as a state-within-a-state – funded by taxpayers, yet shielded from public scrutiny. Though 100% government-owned, the company is registered under the Companies Act, not established by statute, allowing it to bypass the financial disclosure obligations that bind other state-owned enterprises.The company has operations spanning construction, logistics, manufacturing, communications, insurance, agriculture, hospitality, fuel supply and military engineering – often securing government contracts without competitive tender.Repeated calls for transparency have been ignored. MPs have flagged a pattern of cost overruns, questionable transactions and failed projects linked to the company and its subsidiaries.One of the most notorious cases involved a politically connected arms dealer who received tens of millions in advance payments between 2014 and 2015 to source weapons from Uganda, none of which were ever delivered. The then defence minister later admitted the money might never be recovered.Mired in controversy August 26 Manufacturing, another subsidiary, came under fire for supplying military boots that reportedly fell apart during basic use. Soldiers alleged the company imported cheap products from China while billing the state for Namibian-made goods.Between 2018 and 2019, August 26 Construction received over N$5 million to build two roadside police shelters in the north, structures that officers described as substandard and leaky. Around the same time, the company delivered tents that collapsed in the rain.The now-closed N$8 million spare part probe emerged after staff emails showed a scramble to backdate and “fix” the quotation after being exposed on social media. Although a police case was promised, no legal action has materialised.In October 2023, August 26 Logistics managing director Salatiel Ntinda was dismissed, while chief financial officer (CFO) Karel Nel resigned after an internal investigation found the two men guilty of their roles in the disappearance of N$2.5 million from the military-owned entity.The duo was initially suspended after information surfaced that the company lost around N$3 million through a questionable payment, allegedly done without the board’s blessing or knowledge. Mounting political pressureOpposition leader McHenry Venaani has been one of the company’s most persistent critics, accusing government of shielding August 26 Holdings from oversight.“This company has become a holy cow,” he told parliament. “We want to know where the money is going and why we are being denied that information. It is unacceptable that state resources are used with no public accounting under the guise of security.”Venaani has repeatedly demanded that the presidency and auditor general explain why August 26 Holdings has never tabled its audited accounts in the National Assembly.In 2021, the auditor general’s office conducted a forensic audit of the company, but its findings remain undisclosed. Auditor general Junias Kandjeke told Namibian Sun that his office is not the primary auditor, stating: “I only went there in 2021 for a specific assignment. Their auditors are PricewaterhouseCoopers.”He warned that such delays and opacity compromise parliament’s ability to scrutinise defence spending.‘Corrupt military men’AR leader Amupanda has gone further, accusing August 26 Holdings of being central to “a corrupt syndicate” syphoning public funds.“In 2025, the company accepted N$4 million from the //Kharas Regional Council in a deal designed to bypass procurement laws,” he told parliament. “It is not just an accounting problem – it is a problem of power protecting its own.”Amupanda has also pointed to a 2023 incident in which nearly N$3 million allegedly vanished from August 26 Logistics without a trace.“The corrupt military men get their full cup from the big milk container [August 26], while the hungry masses look on,” he said.Former PDM MP Maximalliant Katjimune has likewise accused the defence ministry of undermining democratic accountability.“We cannot have a state within a state,” he warned. “It is not acceptable for the Ministry of Defence to hide behind so-called national security when asked for financial statements of August 26 Holdings.”Legal grey areaEstablished in 1998 by the defence ministry, August 26 Holdings was intended to localise supply chains for military goods and services. However, its registration as a private company has allowed it to evade the public oversight typically applied to state-owned enterprises.While technically a private company, it is fully owned by government and financed by the taxpayer. Its directors file documentation with the Business and Intellectual Property Authority (Bipa), but it is not obligated to report to parliament or publish financial statements.Officials routinely cite “national security” as justification for withholding contracts, audits and financial reports.Critics argue that the company’s legal status is being exploited to allow unchecked spending and shield questionable deals from scrutiny.Call for reformIn April 2023, defence minister Frans Kapofi told the National Assembly that the company’s secrecy was necessary due to its strategic role in national security.But Venaani remains unconvinced: “If it is so strategic, let it show us the books. Let it prove it is not stealing from the Namibian people.”As more scandals surface and transparency remains elusive, August 26 Holdings continues to embody the tension between national security and public accountability.

Is 'untouchable' August 26 Holdings a conduit for looting?

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Namibian Sun 2026-11-03

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Is 'untouchable' August 26 Holdings a conduit for looting?

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Namibian Sun 2026-11-03

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