Austin Elindi courts N$774m investor to avert Enercon liquidation

Austin Elindi - who is currently at the helm of corruption-accused Enercon Namibia - is pleading with the High Court to halt the liquidation of the company as well as Erongo Petroleum, arguing that a pending N$774 million foreign investment deal with a Hong Kong-based company could rescue the embattled firms from financial ruin.While acknowledging the companies’ dire financial position, Elindi, a son of corruption-accused Peter Elindi, who was arrested recently in the Namcor-Enercon scandal - insists that liquidation is premature. He points to a letter of intent issued this week by Pacific Creation Limited of Hong Kong, expressing interest in acquiring equity in the companies.Enercon Namibia, a joint-venture fuel supplier to the Namibian Defence Force (NDF), was founded by brothers Peter and Malakia Elindi. The military’s commercial arm, August 26 Holdings, owns a 25% stake in the company. However, the Elindi brothers, along with seven others, are facing criminal charges relating to Enercon’s receipt of massive unsecured fuel credit and suspicious payments from Namcor, the state-owned oil company.Austin Elindi, who owns Erongo Petroleum and is a shareholder in Enercon, says the proposed US$44 million (approximately N$774 million) investment would alleviate the companies' financial burdens, settle outstanding debts - including N$380 million owed to Namcor - and provide working capital to resume operations.“I submit that it may please this honourable court to exercise its discretion in favour of declining the order to liquidate the first and second respondents, conditioned on the finalisation of the proposed equity investment within a period not less than six months,” his affidavit reads.Court-ordered liquidationIn June, High Court Judge Shafimana Ueitele issued a provisional liquidation order against both companies due to unpaid debts owed to Namcor. The companies had until yesterday - 22 July - to convince the High Court why the liquidation should not be made permanent.According to court filings, by November 2023, Erongo Petroleum owed Namcor roughly N$266.7 million, while Enercon’s debt stood at N$114.6 million. Both firms are currently under provisional liquidation, with Alwyn van Straten appointed by the Master of the High Court to oversee proceedings.Austin Elindi contends that the liquidation should be deferred because Enercon is still owed funds by the Ministry of Defence and Veteran Affairs - money that could ultimately be used to settle Erongo Petroleum’s debt.“As of May 2025, my legal representatives wrote to Namcor’s counsel confirming that Enercon owes my company. On the basis of the outstanding payment from the Ministry of Defence, it is imperative that the liquidation process be stayed until the ministry settles its debt to Enercon, enabling it to indemnify Erongo,” Elindi argued.He further submitted documentation showing that Pacific Creation Limited’s banker - China Minsheng Bank in Hong Kong - had confirmed a balance of over HKD 618 million (approximately N$1.6 billion) as of 18 July 2025. This bank confirmation, along with the investor’s letter of intent, was submitted to court as proof of financial capacity to carry through with the investment.According to Elindi, the infusion of funds would restore the operational capacity of both companies.Corruption falloutThe high-stakes liquidation bid is playing out amid an unfolding corruption scandal that has gripped the country. Peter and Malakia Elindi, along with Malakia’s wife Lydia, were recently arrested in connection with the alleged looting of Namcor.Also charged are former Namcor managing director Immanuel “Imms” Mulunga, former acting head of supply and logistics Cornelius “Cedric” Willemse, former commercial manager Olivia Dunaiski, former CFO Jennifer Hamukwaya and her husband Panduleni Hamukwaya, as well as businessman Leo Nandago Stefanus.The accused face a total of 71 criminal charges, including fraud, money laundering, and violations of the Anti-Corruption Act, all related to irregularities in fuel procurement and suspicious payments.The state’s case hinges on a controversial 2022 transaction, in which Namcor paid Enercon N$53 million for alleged military fuel infrastructure. Prosecutors argue that the assets in question belonged to the Ministry of Defence, not Enercon, and that the payment was neither authorised by Namcor’s board nor properly valued.They allege that unqualified staff carried out the valuation using flawed methods, including replacement cost without depreciation, and no standard procurement protocols were followed. Portions of the payment reportedly ended up in the personal accounts of Jennifer Hamukwaya, her husband, and Willemse, while Mulunga allegedly received a luxury vehicle as a bribe.Several of the accused remain in custody and are currently applying for bail in the Windhoek Magistrate’s Court. - rita@nmh-hub.com.na

Austin Elindi courts N$774m investor to avert Enercon liquidation

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Namibian Sun 2026-02-04

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Austin Elindi courts N$774m investor to avert Enercon liquidation

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Namibian Sun 2026-02-04

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