One of the accused arrested in connection with alleged fraud and corruption at the National Petroleum Corporation of Namibia (Namcor), businessman Peter Elindi, says he is “amazed” by an allegation that he offered a bribe of N$2.5 million to two Namcor managers.
“No, I don’t even know what they are talking about,” Elindi (60) said in the Windhoek Magistrate’s Court yesterday when defence lawyer Sisa Namandje, who is representing him, asked him about one of the charges he is facing following his arrest last week.
“I’m just amazed to see this,” Elindi added.
In the charge, the state is alleging that Elindi offered N$2.5 million to former Namcor managers Cedric Willemse and Jennifer Hamukwaya in July 2022 as inducement for abusing their then positions at Namcor to facilitate the purchase of nine fuel stations by the state-owned company.
Willemse and Hamukwaya are among eight individual co-accused of Elindi in the case in which he has been charged.
A Namcor subsidiary, Namcor Petroleum Trading and Distribution, bought the “right, title and interest in and to” nine service stations at Namibian Defence Force (NDF) bases from the company Enercon Namibia, of which Elindi was a shareholder at that stage, for N$53.2 million in July 2022.
The state is alleging that Elindi defrauded Namcor with the sale of the service stations, as he allegedly misled the fuel company by pretending he could sell the service stations, whereas the service stations were encumbered to the Ministry of Defence and Veterans Affairs for a 15-year period until 2031.
According to Elindi, who is applying to be granted bail after being arrested a week ago, the right to use the pumps and tanks at Enercon’s service stations at NDF bases was sold to Namcor, but the fuel station assets remain Enercon’s until 2031.
“I did not misrepresent to Namcor,” Elindi said when Namandje asked him about a fraud charge he is facing in connection with the sale of the service stations.
He also said Anti-Corruption Commission officers did not give him a chance to explain the transaction before he was arrested.
According to an agreement between Enercon and Namcor Trading and Distribution, N$35 million of the purchase price was paid into a bank account of Enercon and thereafter paid back to the Namcor subsidiary as payment for fuel Namcor had supplied to Enercon.
Elindi said that payment back to the Namcor company was done.
By September 2023, however, Namcor’s then acting managing director, Shiwana Ndeunyema, notified Enercon shareholder Victor Malima that the service stations purchase agreement was being cancelled, and asked for the purchase price and N$7 million in interest to be paid back to Namcor, magistrate Linus Samunzala was informed during the bail hearing.
The magistrate also heard that Namcor instituted a civil claim against Enercon in the High Court in April 2024.
In that case, Namcor is asking the court to declare the service stations’ purchase agreement null and void and to order Enercon to pay N$53.2 million to Namcor.
Elindi said a valuation of the service stations sold by Enercon was done by Namcor employees, who arrived at a valuation of N$53.2 million, before the purchase agreement was signed. Namcor also obtained an independent valuation of the service stations, in which they were valued at about N$55 million, the court heard.
He does not know the Namcor employees who carried out the valuation and did not work with them, Elindi said.
He also does not understand why Namcor has decided to go to a criminal court with a matter that is a contractual dispute, Elindi said.
“The problem is to have a commercial transaction turned into a criminal prosecution. Most of the commercial remedies were abandoned,” Elindi remarked.
“It appears like a witch-hunt,” he said.
The bail hearing, which started on Monday, is continuing.
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!
