Elindi says N$53m assets belonged to Enercon, not NDF

Fraud-accused businessman Peter Elindi has defended a controversial N$53.2 million transaction between Enercon Namibia and Namcor, saying the state-owned oil company legally acquired privately built fuel storage infrastructure - and not state assets, as alleged by the prosecution.The Anti-Corruption Commission (ACC), which last week arrested Elindi and eight others in connection with Namcor’s growing fuel credit scandal, claims the July 2022 deal was unlawful. According to the ACC, Namcor - without board approval - attempted to acquire fuel service stations from Enercon Namibia, located at nine Namibian Defence Force (NDF) bases, on behalf of its Namcor Trading subsidiary.These assets, valued at N$53.2 million, were allegedly still under a 15-year lease agreement between Enercon and the ministry of defence, signed in September 2016. The state argues that Namcor’s payment, made despite these encumbrances, led to a direct financial loss, as ownership of the infrastructure was never transferred.However, during his bail application in the Windhoek Magistrate’s Court yesterday, Elindi, through his lawyer Sisa Namandje, said the charges are based on a “serious misunderstanding” of the commercial arrangement. He argued that the State had conflated two distinct elements, namely the software used for fuel management, and the physical infrastructure - such as pumps and underground tanks- which Enercon had constructed using private funds.“They have confused a software system with underground tanks,” Namandje said. “It is astonishing - my client is being accused of defrauding Namcor by selling what his company legally owned and built from scratch.”Elindi testified that what was sold to Namcor was the right to use Enercon’s physical infrastructure, including newly built tanks and pumps at NDF bases. “Namcor did not buy the tech system. These are completely separate assets,” he said.Namandje submitted documents to support this claim, including the original 2012 agreement with the defence ministry and a 2013 addendum. These, he said, showed Enercon was contractually required to finance and install new, compliant infrastructure at bases in Rundu, Grootfontein, and Oluno.“These were not ministry of defence assets,” Namandje said. “Enercon built them using private capital and was contractually entitled to recover its N$58 million investment through a 15-year fuel supply agreement.”The court heard that Enercon carried out environmental remediation, decommissioned old systems, and installed modern facilities - including 23,000-litre tanks and service buildings - at its own expense. “This was a capital-intensive public–private partnership, not a scam,” Namandje maintained.‘Namcor knew what it was buying’Elindi said the N$53 million purchase price offered by Namcor was based on Enercon’s estimated remaining recoverable value under the contract, which had nine years left. “We did not even recover our full cost. We sold at a discounted amount,” he told the court.Namandje argued that Namcor was not misled. “Namcor sent engineers to inspect and evaluate the assets before making the offer. They knew exactly what they were buying,” he said.He criticised the prosecution for criminalising a commercial transaction. “At worst, if Namcor has buyer’s remorse, they can sue. But to arrest a man for selling what he legally owned is not just wrong - it’s dangerous.”He dismissed claims that the infrastructure was encumbered, saying the same defence ministry agreements cited by prosecutors confirm that Enercon retained ownership and operational risk. Elindi insisted Enercon had full legal rights to use, manage, and transfer the assets.Namandje further noted that Elindi himself was not a direct party to the Namcor transaction and had never been accused by Namcor’s management of fraud or deception.“Did anyone accuse you of fraud or say they were misled?” Namandje asked in court.“Not at all,” Elindi replied.Background to the caseElindi’s arrest is part of the ACC’s sweeping investigation into what is being described as Namibia’s largest fuel fraud scandal to date. Prosecutors allege that Enercon received fuel worth hundreds of millions from Namcor on unsecured credit and failed to repay, placing the state-owned enterprise in a precarious financial position.The ACC claims that transactions like the 2022 fuel storage deal were structured to disguise Enercon’s mounting debts and misuse of Namcor’s credit lines.Elindi and his co-accused face serious charges, including corruption, fraud, racketeering, money laundering, conspiracy to commit corrupt acts, and abuse of position for personal gain.Among the accused are several former Namcor executives: ex-managing director Immanuel “Imms” Mulunga; former acting head of supply and logistics Cornelius “Cedric” Willemse; former commercial manager Olivia Dunaiski; former chief financial officer Jennifer Hamukwaya and her husband Panduleni Hamukwaya; as well as Elindi’s brother Malakia and his wife Lydia Elindi. Also charged is businessman Leo Nandago Stefanus.Authorities are still pursuing Victor Malima, founder of Eco Fuels and former Enercon managing director and chairperson, who allegedly fled Namibia via the Wenela border post at Katima Mulilo last Friday. The ACC believes he is currently hiding in Angola.The case stems from revelations by Namcor’s board that its exposure to private fuel resellers had ballooned out of control - Enercon alone owed over N$380 million.Namandje closed his argument by insisting that the state’s entire case hinges on a fundamental misreading of commercial law: “What is playing out here is not corruption, but confusion.”

Elindi says N$53m assets belonged to Enercon, not NDF

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Namibian Sun 2025-07-15

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Elindi says N$53m assets belonged to Enercon, not NDF

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Namibian Sun 2025-07-15

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