Kapofi blocked N$105m payment to Elindi brothers

Defence minister Frans Kapofi has revealed that he halted a payment of approximately N$105 million by state-owned defence firm August 26 Holdings to brothers Peter and Malakia Elindi, who are now at the centre of a major corruption investigation.The payment was part of a controversial agreement for August 26 to acquire a 50% stake in Enercon, a private company owned by the brothers and which is contracted to supply fuel to the Namibian Defence Force (NDF) under an agreement that runs until at least 2030.Speaking to Namibian Sun yesterday, Kapofi said the deal raised several red flags from the start, including the absence of any official record at the Business and Intellectual Property Authority (BIPA) confirming that August 26 held shares in Enercon.“The whole thing just sounded shady from the very beginning,” Kapofi said. “To this day, not a single cent has been paid as dividends from that transaction, yet millions in public funds were used to supposedly acquire shares in Enercon. I blocked further payments for that so-called shareholding.”“BIPA records do not show August 26 as a shareholder in that company. It looks like some clever people just did their own things to enrich themselves,” he added.N$15 million goneOf the N$120 million agreed for the stake, only N$15 million had been paid before Kapofi intervened. He said his decision was driven by the fear that the transaction would eventually become a matter of public scrutiny.“I’ve opposed this deal since day one. Part of the reason I intervened is because I knew one day we would be asked what we did to stop these fishy dealings. I tried my best,” he said.Kapofi warned that more public money could have been lost had the payments continued. “It could’ve gotten worse,” he said.Sources within the defence ministry told Namibian Sun that senior officials opposed to the deal were intimidated and threatened.“There were even death threats. People were accused of blocking the thieves’ bread,” one official alleged.Resignations and legal falloutEight people have so far been arrested in connection with the Namcor–Enercon scandal, with prosecutors revealing that at least five more arrests are imminent - some expected to involve August 26 officials.Among those arrested are the Elindi brothers, Peter and Malakia, and Malakia’s wife, Lydia. Also arrested are former Namcor managing director Immanuel Mulunga, former supply chain manager Cornelius Willemse, former commercial manager Olivia Dunaiski, and former chief financial officer Jennifer Hamukwaya along with her husband, Panduleni.Meanwhile, August 26 CEO Ndajoina Shalumbu - suspended since late last year - confirmed that he resigned a month ago. “My decision to leave had nothing to do with the current issues surrounding the Enercon deal. It was a personal decision to move on,” he said.Shalumbu's suspension came after allegations surfaced that he authorised an inflated N$8 million invoice for a single vehicle part, allegedly instructing staff at August 26 subsidiary Windhoeker Maschinenfabrik to fabricate a quotation to justify the cost.Disputed seizures and bail hearingsDuring the accused’s court appearance yesterday, defence lawyers challenged the legality of the arrests and the seizure of electronic devices, alleging that no valid search warrants or affidavits were presented.The accused appeared before magistrate Olga Muharukua in the Windhoek Magistrate’s Court. Proceedings were postponed to Monday for formal bail arguments.Lawyers for Mulunga, Willemse, Olivia, Jennifer, and Panduleni told the court that their clients’ phones were seized during arrest without legal documentation. Sisa Namandje, representing Peter, Malakia, and Lydia Elindi, accused the state of violating clients’ privacy.“In relation to state agents asking for passwords, I hope and pray they understand they have no right to access private phone data without a judicial warrant,” Namandje said. “If they accessed my client’s phone, it would be extremely dangerous. We’ll raise this as a ground in a future application.”Milton Engelbrecht, representing Willemse, said his client’s vehicle, phone, and bank cards were seized without due legal process. Gail Kasper, for Dunaiski, challenged the state to justify how they obtained her client’s phone and verification codes.State respondsState prosecutor Menencia Hinda said the case is built on a 2022 investigation and is not reliant on the seized electronic devices.“This case is based on events from 2022. If any injustice was done, the state will acknowledge and address it,” she said. Hinda added that she could not confirm what items were seized but emphasised that the state has sufficient evidence to proceed.She opposed bail, citing a high risk of absconding or interference with investigations. She confirmed at least five additional arrests are expected and noted that some suspects are closely linked to those already in custody.“The release of the accused would not be in the interest of justice,” she argued, requesting that the matter be postponed to 28 August to allow investigations to continue.Bail and detentionApart from Willemse, bail applications are expected to be filed on behalf of the remaining accused. Engelbrecht criticised the timing of the arrests, arguing they were made before the indictments were finalised. He reserved his client’s right to apply for bail pending the finalisation of the indictment, expected by tomorrow afternoon.Jennifer, Lydia, and Dunaiski are being held at the Klein Windhoek Police Station, while Mulunga, Willemse, Panduleni, and the Elindi brothers remain in custody at the Windhoek Correctional Facility. – Additional reporting by Toivo Ndjebela

Kapofi blocked N$105m payment to Elindi brothers

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Namibian Sun 2025-10-23

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Kapofi blocked N$105m payment to Elindi brothers

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Namibian Sun 2025-10-23

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