The Development Bank of Namibia (DBN) is demanding N$29 million from Peter and Malakia Elindi and Enercon Namibia in loans they two took out and failed to repay.
The Elindis are currently in custody in connection with alleged corruption at the National Petroleum Corporation of Namibia (Namcor).
The Elindi brothers jointly owned Enercon at the time the loans were extended. Peter, however, left the company in 2023.
The brothers face counts of corruptly giving gratification, conspiring to commit offences under the Anti-Corruption Act, fraud, racketeering and money laundering.
Enercon had a fuel supply agreement with Namcor, which Enercon liquidated because of N$114 million in unpaid debts last month.
According to court documents submitted to the High Court by the DBN earlier this month, the money is related to loans taken out to fund business activities for their business venture between 2011 and 2015.
Enercon defaulted on these loans in October 2022 and February 2024.
The first loan of N$29 million was taken out in 2011 to fund Enercon’s petroleum products and fuel systems against personal sureties and cessions of life insurance policies as security.
This loan was paid off, and in 2015, the bank extended two further facilities to Enercon.
The first was a working capital loan of N$18 million and the second a property loan of N$7.2 million to enable Enercon to buy premises in Windhoek.
Both loans carried interest at prime plus 3% and were repayable over 120 and 144 months.
These loans were secured by additional personal and corporate sureties, mortgage bonds over three immovable properties, and cessions of life policies.
Enercon paid 55 instalments on the working capital loan and missed payments after 1 February 2024.
The property loan attracted 47 instalments and the last payment was due on 10 October 2022.
On 12 April 2023, the bank issued a written demand but received no payment.
The bank advised Enercon on the same day that “the full amount owed became due and payable”.
Other defendants are City View Apartments CC, Brabant CC belonging to the Elindis, as well as Rodrigo Antero Pereira Pimenta.
The bank also cited the Business and Intellectual Property Authority as the ninth defendant to correct an error in Enercon’s registration number.
The company appears in the loan agreements labelled as number 2013/0179, but the correct number is 2009/0110.
The DBN in the is now asking the court to order interest at prime plus 3% from 1 June 2025 and 2% on overdue amounts.
It also wants an order declaring the mortgaged properties executable under the mortgage bonds registered over erf 1 Brabant, and erven 15, 23 and 26 City View Apartments in Windhoek.
The DBN says this relief will allow it to recover the debt by selling Enercon’s properties if its sureties do not cover this.
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