Mulunga blames N$53 million payment on ‘oversight’
Former Namcor managing director Immanuel Mulunga told the Windhoek Magistrate’s Court yesterday that a policy oversight – not criminal intent – led to the controversial N$53 million payment to Enercon, which the State alleges formed part of a corruption syndicate.
Under cross-examination by public prosecutor Basson Lilungwe, Mulunga maintained that while the transaction may have breached Namcor’s internal financial policy, it was not criminal. He said the oversight ultimately cost him his job.
The payment, which the prosecution argues was made without proper authorisation, is at the heart of a multimillion-dollar corruption case that has seen nine people arrested, with one suspect still at large.
Despite the funds being paid, the assets in question were allegedly never transferred to Namcor, nor was the money refunded.
Mulunga admitted that, according to Namcor’s schedule of authority, a managing director may only approve expenditures up to N$25 million. However, he argued that the N$53 million transaction was drawn from two pre-approved budget lines – N$25 million and N$40 million – intended for asset purchases and business development.
“We believed we could reallocate funds between budget votes. Forty plus twenty-five is sixty-five [million], which was more than enough to cover the N$53 million,” he explained.
Nevertheless, he acknowledged that the reallocation exceeded the internal policy’s 20% transfer limit between budget votes.
“There was an oversight from my colleagues, and I take responsibility. We didn’t realise the reallocation exceeded what was allowed. But this wasn’t criminal – it was a policy breach. I was disciplined for it, and it contributed to me losing my job,” he said.
He added: “No one is perfect. We all make mistakes.”
Fuel agreement basis
Mulunga further stated that the asset acquisition was part of an existing fuel supply agreement and not a new procurement, arguing that such transactions typically fall under management’s domain rather than requiring full board approval.
He added that the Namcor board had already approved the overall budget and that individual transactions within that framework were delegated to management.
The State, however, contends that Mulunga bypassed internal controls and failed to seek explicit board approval, as required for transactions exceeding N$25 million. Prosecutors are opposing bail on the basis of the seriousness of the charges and the potential for interference in ongoing investigations.
Objection overruled
Earlier in the proceedings, magistrate Linus Samunzala overruled an objection by Mulunga’s lawyer, Francois Bangamwambo, after the prosecution referred to a document that had not been disclosed to the defence.
The document reportedly outlines Namcor’s schedule of authority, specifically the clause requiring board approval for any transaction above N$25 million.
Samunzala ruled that full disclosure of documents is not required at the bail stage, as the current proceedings do not constitute a trial.
Cross-examination is expected to continue today.
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Under cross-examination by public prosecutor Basson Lilungwe, Mulunga maintained that while the transaction may have breached Namcor’s internal financial policy, it was not criminal. He said the oversight ultimately cost him his job.
The payment, which the prosecution argues was made without proper authorisation, is at the heart of a multimillion-dollar corruption case that has seen nine people arrested, with one suspect still at large.
Despite the funds being paid, the assets in question were allegedly never transferred to Namcor, nor was the money refunded.
Mulunga admitted that, according to Namcor’s schedule of authority, a managing director may only approve expenditures up to N$25 million. However, he argued that the N$53 million transaction was drawn from two pre-approved budget lines – N$25 million and N$40 million – intended for asset purchases and business development.
“We believed we could reallocate funds between budget votes. Forty plus twenty-five is sixty-five [million], which was more than enough to cover the N$53 million,” he explained.
Nevertheless, he acknowledged that the reallocation exceeded the internal policy’s 20% transfer limit between budget votes.
“There was an oversight from my colleagues, and I take responsibility. We didn’t realise the reallocation exceeded what was allowed. But this wasn’t criminal – it was a policy breach. I was disciplined for it, and it contributed to me losing my job,” he said.
He added: “No one is perfect. We all make mistakes.”
Fuel agreement basis
Mulunga further stated that the asset acquisition was part of an existing fuel supply agreement and not a new procurement, arguing that such transactions typically fall under management’s domain rather than requiring full board approval.
He added that the Namcor board had already approved the overall budget and that individual transactions within that framework were delegated to management.
The State, however, contends that Mulunga bypassed internal controls and failed to seek explicit board approval, as required for transactions exceeding N$25 million. Prosecutors are opposing bail on the basis of the seriousness of the charges and the potential for interference in ongoing investigations.
Objection overruled
Earlier in the proceedings, magistrate Linus Samunzala overruled an objection by Mulunga’s lawyer, Francois Bangamwambo, after the prosecution referred to a document that had not been disclosed to the defence.
The document reportedly outlines Namcor’s schedule of authority, specifically the clause requiring board approval for any transaction above N$25 million.
Samunzala ruled that full disclosure of documents is not required at the bail stage, as the current proceedings do not constitute a trial.
Cross-examination is expected to continue today.
- [email protected]
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