N$5.3 million yet to be paid back
The National Petroleum Corporation of Namibia (Namcor) has recovered N$276 million linked to a controversial payment for shares in Angolan oil blocks.
Namcor, under the leadership of Imms Mulunga, invested more than N$276 million in 2022 to secure oil blocks in Angola.
However, at least more than N$126 million in this deal was paid by Namcor without board approval, which led to the suspension of Mulunga as managing director in 2023.
“About 98% of our total deposit in Sungara is back. And 2% of the funds will be used to settle third-party service providers such as due diligence, auditors, etc.,” Namcor spokesperson Utaara Hoveka confirmed to The Namibian yesterday.
Hoveka, however, didn’t specifically say how much was paid back.
Sources told The Namibian that N$276 million has been returned to Namcor’s accounts.
A balance of N$5.3 million is, however, still outstanding, sources say.
Sources say the money was paid back in batches with the first payment worth US$6.5 million (N$115 million) and the second worth US$9.1 million (N$161 million.)
The transaction relates to oil-producing blocks in Angola which involved Namcor and Angola’s state-owned oil company Sonangol.
In 2022, Namcor, Sequa Petroleum from Britain, and Petrolog Group formed a group called Sungara Energies.
This joint venture agreed to pay N$8 billion (US$451 million) to Sonangol P&P for a 10% interest in block 15/06, 40% working interest in block 23, and 35% working interest in block 27.
The consortium was supposed to pay N$400 million (US$22.6 million) as a deposit fee to Sonangol Petroleum within five business days after receiving the conditions.
Namcor agreed to pay US$10 million (N$170 million) toward the deposit. However, the partners only paid US$6 million (N$102 million), leaving a shortfall of US$6.7 million (more than N$100 million).
It is unknown which partner failed to pay.
Mulunga took the transaction to Namcor’s board on 19 August 2022.
But the previous board, which was led by Jennifer Comalie, allegedly rejected the proposal to pay over N$100 million.
It appears Mulunga went ahead to finalise the transaction without their blessing.
Mulunga refers to it as a “world-class deal”.
Mulunga yesterday said: “I don’t know but I suspect they paid back the full amount. I see no reason they could have short-paid. But ask the people from the company to get the right facts.”
To Mulunga, the failure to pay would have resulted in losing the oil block that is apparently producing commercial oil.
Sources say Mulunga believes the board approved the transaction in 2021.
This transaction is one of many issues the old board has allegedly clashed over.
Some board members were not against the transaction, but claim Mulunga’s failure to get board approval for the extra payment is of concern.
The then board chairperson Comalie said the transaction was done without the board’s approval.
Documents show that the Namcor board discussed this transaction in six of eight meetings held between June and December 2022.
A 20 January 2023 letter addressed to the then minister of finance and public enterprises Iipumbu Shiimi shows the transaction was discussed at Namcor’s board meeting.
“Consider a request for an additional US$6.7 million deposit to be paid on the Sonangol deal,” stated an agenda point of a Namcor board meeting on 19 August 2022.
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