Elindis’ company broke, reportedly owes staff over N$6.7m

Several Enercon employees, who say they have not been paid since June last year, claim the company's liquidator is trying to organise claim forms for them but warned there was little hope, as the company has no money or assets.The company is reported to owe its staff more than N$6.7 million in unpaid salaries.Enercon directors Peter Elindi, Malakia Elindi and Austin Elindi are in custody, while another director, Victor Malima, has been on the run for months.Employees say the Labour Commissioner told them that, since their bosses are in prison, the commission could not reach out to them. “It is not allowed for them to contact people in prison," a source told Namibian Sun last Thursday."They then referred us to Sisa Namandje to ask if there’s any way to sort out our salaries or anything related to that, but we decided not to go there,” the source added. The individual, who spoke on condition of anonymity, said they instead approached the liquidator’s office, as Enercon has been liquidated.No hopeAccording to a source, the liquidator told employees that a court meeting scheduled for 12 November had been postponed, likely to next week."The liquidator is trying to organise claim forms for employees, though he also said there’s not much hope because the company has no money and no assets. But we are trying, even though it’s a long process," the source explained. The source added that they were told the liquidator had allegedly faced threats, though it was unclear who was responsible.The source added that the "whole situation is just strange"."Honestly, it does not look hopeful, but we continue the process. We are in communication with the liquidator because we do not have any other choice.”Heavy-duty debtIn June 2023, the fuel supply company reportedly owed the Namibia Revenue Agency (NamRA) more than N$500 million in taxes, according to a demand letter seen by Namibian Sun.In April alone, Enercon reportedly owed 11 suppliers over N$951 599, a debt insiders say continues to grow.A Namibian Sun investigation revealed that Enercon has been in operational freefall since losing its fuel supply contract with the defence ministry.The same source said the defence ministry cancelled the contract because of non-delivery of service."Enercon was defaulting, failing to deliver the fuel. The ministry got tired and said, ‘Okay guys, what’s going on? Let’s just cancel,’” the source said.Ordered to repay N$14mWindhoek High Court Judge Thomas Masuku recently ruled in favour of the Development Bank of Namibia (DBN), ordering repayment of over N$14 million owed by Ombili Health Centre. The centre is owned by Peter and his brother, Malakia Elindi.The matter arose from the entity’s failure to repay a loan signed on its behalf by Peter in 2017, when he was its director.After repeated unsuccessful attempts to recover the debt, DBN sought an order to compel Ombili and its sureties, the Elindis and Nyambali Medical Centre, to pay the N$14.1 million. Peter, Malakia and Nyambali are jointly and severally liable for Ombili’s debt, which the bank said must be repaid in full. The loan agreement originally provided N$2.6 million, repayable in 36 monthly instalments.Despite receiving N$60.9 million in February from a civil claim settlement against the defence ministry, Enercon continues to demand N$484 million in damages over the purported cancellation of its 15-year fuel supply contract.Enercon, through its lawyer Sisa Namandje, argue that the ministry acted unlawfully and in breach of contractual obligations.In a letter dated 16 April 2025 to the defence ministry's Annely Haiphene, Namandje reiterated that the cancellation of the fuel supply agreement, signed 15 September 2016 and set to run until 2031, was neither lawful nor properly effected.The contract required Enercon to supply petroleum products to the defence ministry and build fuel depots or service-station infrastructure on NDF bases. A controversial clause reportedly obliged government to settle outstanding invoices even after termination, a “devil’s clause” that critics say left the state liable despite alleged non-performance. This clause was cited when the ministry paid Enercon large sums after the contract ended.Namandje also represents Enercon founders Peter and Malakia Elindi in the ongoing Enercon-Namcor corruption saga.Liquidation prematureThree months ago, Austin Elindi petitioned the High Court to halt the liquidation of Enercon and Erongo Petroleum.He cited a pending US$44 million (approximately N$774 million) foreign investment deal with Hong Kong-based Pacific Creation Limited as a potential lifeline.While acknowledging the companies’ dire financial position, Austin, son of Peter, insisted liquidation is premature.He claims the proposed investment would alleviate financial burdens, settle outstanding debts, including N$380 million owed to Namcor, and provide working capital to resume operations.“I submit that it may please this honourable court to exercise its discretion in favour of declining the order to liquidate the first and second respondents, conditioned on the finalisation of the proposed equity investment within a period not less than six months,” his affidavit reads.Enercon Namibia, a joint-venture fuel supplier to the Namibian Defence Force (NDF), was founded by brothers Peter and Malakia Elindi. The NDF’s commercial arm, August 26 Holdings, owns a 25% stake in the company. The Elindi brothers, along with seven others, face criminal charges relating to Enercon’s receipt of massive unsecured fuel credit and suspicious payments from Namcor.nikanor@nmh-hub.com.nahttps://q.my.na/FDMY

Elindis’ company broke, reportedly owes staff over N$6.7m

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Namibian Sun 2025-11-17

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Elindis’ company broke, reportedly owes staff over N$6.7m

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Namibian Sun 2025-11-17

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