August 26 loaned Enercon N$15m to supply fuel for Geingob funeral logistics

Defence company August 26 Holding has confirmed that it loaned N$15.3 million to controversial entity Enercon to pay for fuel supplied to the defence ministry, which faced operational and logistical challenges following the death of former president Hage Geingob last year.Geingob died on 4 February 2024 and the country’s defence force was mandated to manage all logistics related to the burial, including escorts to his home Casa Rosalia, Parliament Gardens, Independence Stadium and Heroes' Acre.The defence force also accompanied the late president's body on a ceremonial tour around Windhoek, which was divided into seven legs.As the sole supplier of fuel to the defence force, Enercon allegedly struggled to fulfil its supply obligations, prompting the company to ask August 26, which holds a 26% shareholding in Enercon, to step in.“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 shareholders loan,” August 26 acting CEO David Brown told Namibian Sun yesterday.In line with these resolutions, August 26 Holdings facilitated direct payments to suppliers totalling N$15.3 million, Brown said.“Enercon Namibia has since repaid N$2.9 million, leaving an outstanding balance of N$12.3 million. Unfortunately, due to the current liquidation proceedings, the outstanding amount has not been settled in full.“As you are aware, Enercon Namibia is currently under provisional liquidation, with the final order of liquidation scheduled for August 21, 2025. We will be submitting our claim to the liquidator as part of this process,” he added.Loan agreement Namibian Sun has seen a loan agreement, dated 25 March 2024 in Windhoek, outlining a 12-month repayment period during which Enercon was to reimburse the defence company – with no interest. However, the deal is bound by stringent conditions that empower August 26 Holding to demand immediate repayment under several trigger events.The loan money, according to the agreement, was paid to several entities that are now at the centre of the Enercon-Namcor corruption scandal, with Eco Fuel reportedly receiving N$3.9 million on 23 February 2024 and an additional N$3 million on 22 March.Erongo Petroleum was reportedly paid N$4.2 million on 23 February, while Enercon itself allegedly received N$1.1 million on the same day.Strict conditions The funds were strictly earmarked for the servicing of the ministry of defence supply purchase orders. The agreement explicitly prohibited Enercon from using the funds for any other purpose.Despite the absence of interest charges, the terms of the loan are far from lenient. Any act of insolvency, or an attempt by Enercon to settle debts with third parties, would trigger immediate full repayment. The same applies in the event of changes to Enercon’s financial standing or ownership that August 26 Holding deems detrimental to repayment ability.The agreement was signed by August 26 Holding’s former CEO Ndajoina Shalumbu and Enercon’s then CEO and now fugitive Victor Malima, both warranting authority to bind their respective companies.Enercon is currently under provisional liquidation, following a recent court ruling due to excessive liabilities. - Nikanor@nmh-hub.com.na

August 26 loaned Enercon N$15m to supply fuel for Geingob funeral logistics

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Namibian Sun 2025-08-08

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August 26 loaned Enercon N$15m to supply fuel for Geingob funeral logistics

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Namibian Sun 2025-08-08

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