August 26 chases N$12.3m Enercon debt via liquidators

August 26 Holding Company has turned to Enercon Namibia’s liquidators to recover N$12.3 million advanced to support fuel supplies during former president Hage Geingob’s state funeral.August 26 acting chief executive David Brown said the company had lodged its claim with the liquidators but had not received any further payments.“All claims are with the liquidators, including ours. We await the outcome eagerly. To date, we have not received any additional payments,” Brown told Namibian Sun on Monday.After Geingob’s death on 4 February 2024, the Namibia Defence Force was tasked with managing extensive logistics for his state funeral.These included escorts to Casa Rosalia, Parliament Gardens, Independence Stadium and Heroes’ Acre, as well as a ceremonial procession around Windhoek.August 26 previously confirmed that it had facilitated payments to fuel suppliers after Enercon struggled to meet its obligations to the defence ministry. Enercon, which was the sole supplier of fuel to the defence force, encountered operational and logistical difficulties and sought assistance from August 26, which holds a 26% stake in the company.“Following the unfortunate passing of the late President Hage Geingob, operational challenges arose, and as per the resolutions from the extraordinary shareholders' meeting of Enercon Namibia held on February 14, 2024, the board mandated August 26 Holdings to coordinate payments for fuel supplied to the Ministry of Defence and Veterans Affairs on behalf of Enercon Namibia as a shareholder loan,” Brown said at the time.According to August 26, Enercon made a partial repayment but still owes approximately N$12.3 million. The company must now attempt to recover the balance through Enercon’s liquidation process.Final liquidationThe High Court granted final liquidation orders against Enercon and Erongo Petroleum in August 2025 following applications brought by Namcor Petroleum Trading and Distribution, a subsidiary of the National Petroleum Corporation of Namibia.Namcor Petroleum Trading and Distribution approached the Windhoek High Court in April 2024, seeking to liquidate the companies over substantial unpaid debts arising from fuel-supply and credit agreements.Under the agreements, Enercon and Erongo Petroleum were required to settle their accounts within 30 days of receiving invoices for fuel products supplied to them.By November 2023, Erongo Petroleum owed N$266.7 million, while Enercon owed N$114.6 million. Neither company settled the amounts despite demands for payment, the court was told.Deputy judge president Shafimana Ueitele placed both companies under provisional liquidation on 10 June 2025 before final liquidation orders were granted in August that year.Businessmen Peter and Malakia Elindi, who are among those charged in the wider Namcor fraud and corruption case, were shareholders and directors of Enercon until February 2023.Loan agreementA loan agreement seen by Namibian Sun, dated 25 March 2024, provides further details about the financial arrangement between August 26 and Enercon.The agreement records an interest-free loan of N$12.3 million from August 26 to Enercon, repayable within 12 months. It states that the money was intended to pay entities supplying fuel and related services for Ministry of Defence and Veterans Affairs operations.The agreement expressly restricted how the money could be used.“The borrower shall only utilise the loan to service the MODVA purchase orders and shall not utilise the loan for any other purpose,” the agreement stated.Although the loan carried no interest, it contained conditions intended to protect August 26 and improve its prospects of recovering the money.The agreement allowed August 26 to demand immediate repayment if Enercon became insolvent, attempted to compromise its debts or underwent changes to its financial position or ownership that the lender considered detrimental to its ability to repay.It also allowed August 26 to take measures it considered necessary to mitigate its losses if Enercon failed to meet its obligations.The document was signed by then August 26 CEO Ndajoina Shalumbu and Enercon chief executive Victor Malima, who fled Namibia after the Namcor fuel scandal erupted.August 26’s N$12.3 million claim must now be considered alongside those of Enercon’s other creditors. Any recovery will depend on the acceptance and ranking of its claim, as well as the assets available to the liquidators.nikanor@nmh-hub.com.na

August 26 chases N$12.3m Enercon debt via liquidators

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Namibian Sun 2026-09-02

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August 26 chases N$12.3m Enercon debt via liquidators

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Namibian Sun 2026-09-02

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