A Company and close corporation owing close to N$400 million to a subsidiary of the National Petroleum Corporation of Namibia (Namcor) are staring bankruptcy in the face after being placed under a provisional liquidation order.
Deputy judge president Shafimana Ueitele ordered the provisional winding up of the company Enercon Namibia and the close corporation Erongo Petroleum, which by November 2023 owed a combined amount of more than N$381 million to a Namcor subsidiary, in a judgement delivered in the Windhoek High Court last week.
The company, Namcor Petroleum Trading and Distribution, which is a subsidiary of the state-owned Namcor, applied for Enercon Namibia and Erongo Petroleum to be provisionally wound up after the company and close corporation failed to pay debts owed to Namcor Petroleum Trading and Distribution.
The sole member of Erongo Petroleum is Austin Elindi. He is also a director and shareholder of Enercon Namibia.
The court was informed that Erongo Petroleum and Enercon both had fuel supply and credit facility agreements with Namcor Petroleum Trading and Distribution.
In terms of those agreements, they had to pay for fuel products delivered to them by the Namcor company within 30 days after invoices for the delivered products were provided to them.
The court was informed that Erongo Petroleum and Enercon both failed to pay Namcor Petroleum Trading and Distribution for fuel products delivered to them.
In his judgement, Ueitele recounted that the court was informed that by February 2022, Erongo Petroleum was in arrears with repayments in an amount of N$23.5 million.
The close corporation’s debt with Namcor Petroleum Trading and Distribution increased to about N$215.8 million by the end of March 2023, and by November 2023 had risen to N$266.7 million.
Enercon owed Namcor Petroleum Trading and Distribution about N$39 million at the end of March 2023. By the end of November 2023, Enercon’s indebtedness to the Namcor company had risen to N$114.6 million, Ueitele noted.
In a sworn statement filed at the court, one of Enercon’s directors, Victor Malima, disputed that figure, though, calling it “greatly exaggerated and not accurate”.
Ueitele also noted in his judgement on Namcor Petroleum Trading and Distribution’s applications for Erongo Petroleum and Enercon to be wound up that in oral arguments heard at the end of April lawyers representing the close corporation and company confined their opposition to the applications to a contention that the applications were not properly authorised.
The lawyers argued that the applications were authorised by Namcor itself, and not by its subsidiary, Namcor Petroleum Trading and Distribution.
However, according to a resolution provided to the court, Namcor’s trading board in June last year appointed a director of Namcor Petroleum Trading and Distribution to apply for the winding up of Erongo Petroleum and Enercon on behalf of Namcor Petroleum Trading and Distribution, Ueitele noted.
He concluded that Namcor Petroleum Trading and Distribution “did ratify the institution of the winding-up proceedings against both Erongo and Enercon”.
He also found there was no dispute that Erongo Petroleum and Enercon concluded fuel supply agreements and credit facility agreements with Namcor Petroleum Trading and Distribution, and that they had to pay for fuel products supplied to them not later than 30 days after receiving invoices from the Namcor company.
There is also no dispute that although formal demands for Namcor Petroleum Trading and Distribution to be paid were served on Erongo Petroleum and Enercon in March 2024, they have not paid their debts to the Namcor subsidiary, Ueitele said.
This means that in terms of the Close Corporations Act and the Companies Act, Namcor Petroleum Trading and Distribution is entitled to a provisional order for the liquidation of Erongo Petroleum and Enercon, he added.
The Namcor company was represented by legal counsel Gerson Narib, instructed by Willem van Greunen, when Ueitele heard arguments on the winding-up applications.
Lawyers Roberto Avila and Ngakumbirue Katjivena represented Erongo Petroleum and Enercon Namibia, respectively.
In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.
The Namibian uses AI tools to assist with improved quality, accuracy and efficiency, while maintaining editorial oversight and journalistic integrity.
Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for
only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!
