Govt fuel fraud prompts N$1,2 million judgement

THE High Court yesterday added to the legal headaches of Esau Mbako, a former director of a company contracted to supply electronic fuel-monitoring systems for Government’s vehicle fleet, by granting a N$1,22 million summary judgement against him.

In terms of an order granted by Judge Louis Muller, without any opposition from Mbako’s side, he has been ordered to pay AFS Group Namibia N$1 220 293,10, plus 20 per cent interest per year as from yesterday. Mbako was a minority shareholder and director in the company until he resigned as director in mid-March.ASSET CRUNCH The order opens the way for AFS Group Namibia to make a move on Mbako’s assets if he fails to pay up as directed by the court.AFS Group Namibia’s claim against Mbako is based on allegations that Mbako defrauded the company – and also the Government Garage – to the tune of N$1,9 million while he was in charge of the company’s affairs in Namibia.According to AFS Group Namibia’s claim against Mbako, he created fictitious company invoices and presented these to the Government Garage or the Ministry of Works, Transport and Communication for payment.As a result of the alleged fraudulent invoices, the Government Garage made payments totalling N$1,117 million to AFS Group Namibia.However Mbako then allegedly proceeded to also defraud his own company by depositing these payments into his own rather than the company’s bank account, AFS Group Namibia stated in its claim.In addition to pocketing payments that resulted from fraudulent invoices he presented to the Government Garage, Mbako also deposited payments that were rightfully due to AFS Group Namibia into his own, rather than the company’s, bank account, the company further claims.A total of N$802 743 found its way into his bank account in this manner, the High Court was informed.With Mbako having already paid N$700 250 to AFS Group Namibia, he is still indebted to the company for a little over N$1,22 million, the court was informed.CRIMINAL PROBE Yesterday’s legal action against Mbako is the second instalment in legal steps by AFS Group Namibia that Mbako has had to contend with in three months’ time.In early April, the company approached the High Court for the first time with claims that it discovered that Mbako had been committing fraud in which he presented fictitious invoices to the Government Garage to claim payment for goods and services when that payment was not due, while also claiming that he had deposited money due to the company into his own bank account.The outcome of that first case was that the High Court froze two bank accounts belonging to Mbako.Mbako still faces steps on a third front, with a criminal investigation under way after the Ministry of Finance laid a criminal charge against him with the Police.The Police investigation is continuing, a Police spokesperson, Warrant Officer James Matengu, said yesterday.He said the Police were still waiting to be provided with proper documentation that they had requested from banks, the Ministry of Finance and elsewhere in connection with the matter.They want to build up a proper case before Mbako might be arrested and charged, Matengu said.Mbako was a minority shareholder and director in the company until he resigned as director in mid-March. ASSET CRUNCH The order opens the way for AFS Group Namibia to make a move on Mbako’s assets if he fails to pay up as directed by the court.AFS Group Namibia’s claim against Mbako is based on allegations that Mbako defrauded the company – and also the Government Garage – to the tune of N$1,9 million while he was in charge of the company’s affairs in Namibia.According to AFS Group Namibia’s claim against Mbako, he created fictitious company invoices and presented these to the Government Garage or the Ministry of Works, Transport and Communication for payment.As a result of the alleged fraudulent invoices, the Government Garage made payments totalling N$1,117 million to AFS Group Namibia.However Mbako then allegedly proceeded to also defraud his own company by depositing these payments into his own rather than the company’s bank account, AFS Group Namibia stated in its claim. In addition to pocketing payments that resulted from fraudulent invoices he presented to the Government Garage, Mbako also deposited payments that were rightfully due to AFS Group Namibia into his own, rather than the company’s, bank account, the company further claims.A total of N$802 743 found its way into his bank account in this manner, the High Court was informed.With Mbako having already paid N$700 250 to AFS Group Namibia, he is still indebted to the company for a little over N$1,22 million, the court was informed.CRIMINAL PROBE Yesterday’s legal action against Mbako is the second instalment in legal steps by AFS Group Namibia that Mbako has had to contend with in three months’ time.In early April, the company approached the High Court for the first time with claims that it discovered that Mbako had been committing fraud in which he presented fictitious invoices to the Government Garage to claim payment for goods and services when that payment was not due, while also claiming that he had deposited money due to the company into his own bank account.The outcome of that first case was that the High Court froze two bank accounts belonging to Mbako.Mbako still faces steps on a third front, with a criminal investigation under way after the Ministry of Finance laid a criminal charge against him with the Police.The Police investigation is continuing, a Police spokesperson, Warrant Officer James Matengu, said yesterday.He said the Police were still waiting to be provided with proper documentation that they had requested from banks, the Ministry of Finance and elsewhere in connection with the matter.They want to build up a proper case before Mbako might be arrested and charged, Matengu said.