ACC defends Mulunga

The Anti-Corruption Commission (ACC) has cleared National Petroleum Corporation of Namibia (Namcor) suspended managing director Immanuel Mulunga of criminal intent for a payment of N$100 million for an oil block in Angola.

The anti-graft agency went a step further and said Mulunga acted in the best interest of the state-owned enterprise, as well as the country.
Mulunga was suspended in April for allegedly leaking information to the media and filing court papers that defended the national oil company’s finance executive, Jennifer Hamukwaya.

He was also suspended for an unauthorised payment of N$100 million for an oil block in Angola.

According to a summary of investigation and findings, ACC director general Paulus Noa said there is no evidence to prove criminal intention against Mulunga.

“The managing director (MD) was not given approval by the board (of directors) when he authorised the transfer of the money to Sungara Energies Ltd. He, however, did so in the interest of Namcor and the country, after the board was consulted and kept on deferring the discussions and decision on the matter,” Noa said.

The payment was a matter in which Mulunga had to make a difficult decision to safeguard the contract and avoid financial loss to Namcor and the country.

Noa said during the ACC’s investigations, Namcor board chairperson Jennifer Comalie indicated in her own assessment that Mulunga’s action was a breach of delegation of authority.

He said Comalie highlighted that Mulunga did not act with criminal or malicious intent, and she also confirmed that the total deposit paid by Namcor was paid to Sonangol, and the minister of mines and energy was informed about the development of the oil block deal.

The ACC boss also said Namcor deputy chairperson Tim Ekandjo’s sworn statement confirmed Comalie’s in many material respects.

“He (Ekandjo) confirmed that the board had approved Namcor’s participation in the Sonangol oil block deal through a joint venture between Namcor, E&P, Sequa and Petrolog, who then formed Sungara Energies Ltd.

“The board passed a resolution to delegate the MD to be Namcor’s representative on [the] Sungara joint venture,” Noa said.

Noa said Ekandjo also indicated that the board resolved to authorise Mulunga as Namcor’s representative to enter and execute the sale and purchase agreement and signing of every document and undertaking required in respect of the sale and purchase agreement.

APPROVAL

Noa alleged that Ekandjo also confirmed that the board approved the initial US$10 million (N$177 million) equity contribution to Sonangol through Sungara.

According to Noa, Ekandjo said Mulunga approached the Namcor board to approve the additional US$6,7 million (N$118m) to carry the other partners on the joint venture in August 2022.

“The board declined to discuss the matter on a round robin platform and eventually convened meetings after the due date set for a full deposit payment to Sonangol,” Noa said.

He added that Mulunga had already instructed the finance and administration executive to pay the additional money to Sungara Energies Ltd, while waiting for the board’s approval.

Noa said despite several meetings, the board could not approve the additional payment. The board was equally not in a legal position to demand the money back from Sonangol, because Namcor deals with the joint venture but not with Sonangol.

“The deputy chairperson also expressed his opinion that the MD acted in the interest of Namcor because he made efforts to seek board approval for the extra payment and demonstrated its importance in terms of saving the deal, and how the failure to pay could damage Namcor’s reputation and that of Namibia, had Sungara breached the contract.

Mulunga was also clear to Sungara Energies Ltd, that they had to wait for the board’s approval before they released the funds to Sonangol, however, the other directors on the joint venture took advantage of the opportunity and paid the funds to Sonangol,” Noa said.

In terms of whether Ekandjo observed any criminal or malicious intent from Mulunga’s conduct, Noa said Ekandjo allegedly noted that Mulunga “acted in the best interest of Namcor and that of the country, seeing the massive benefits of the deal”.

Comalie and Mulunga did not respond to text messages sent to them at the time of going to print yesterday.