Prosecutor: Elindi sold Namcor a ‘dream’ service station deal

Businessman Peter Elindi sold a dream to the National Petroleum Corporation of Namibia (Namcor) when Namcor purchased nine service stations from a company of Elindi three years ago, a prosecutor claimed in the Windhoek Magistrate’s Court yesterday.

“You did not sell them anything – you sold them a dream,” public prosecutor Basson Lilungwe told Elindi (60) before he wrapped up his cross-examination of Elindi in a bail hearing before magistrate Linus Samunzala.

“Because up to now they have not taken ownership of those assets, in other words, you are a seller of dreams – there is nothing that was sold,” Lilungwe said.

“That is your word, sir, in your capacity as a prosecutor,” Elindi responded.

He continued that when money is spent to set up fuel pumps, tanks and other facilities and to maintain those facilities, those are assets in the fuel industry and the entity that paid for it has the rights and title to the facilities.

Those rights have a value, Elindi said.

“So, I wasn’t selling a dream, sir,” Elindi said as well.

Lilungwe made his “seller of dreams” remark in connection with a transaction in which Namcor bought nine service stations at Namibian Defence Force (NDF) bases throughout Namibia from the company Enercon Namibia for N$53.2 million in July 2022. Elindi was a shareholder of Enercon and chairperson of its board of directors at that stage.

The state is alleging that Namcor was defrauded with that transaction, as Elindi was allegedly not in a position to sell the service stations, because they were encumbered to the Ministry of Defence and Veterans Affairs due to a 15-year fuel supply agreement between Enercon and the ministry that was concluded in September 2016.

Elindi told the court that 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 Namibia’s until 2031.

He is also denying that he defrauded Namcor.

“I have committed no offence. All I was doing there was a commercial transaction,” Elindi said.

“I don’t feel I’ve done anything wrong. In fact, I haven’t done anything wrong,” he added.

The court has heard that Namcor cancelled the agreement to purchase the service stations in September 2023, and in April 2024 instituted a civil claim against Enercon in the High Court, which is being asked to declare the service stations purchase agreement null and void and to order Enercon to pay N$53.2 million to Namcor.

During his cross-examination, Lilungwe also asked Elindi if he was aware of a public outcry about alleged fraud and corruption at the state-owned Namcor.

A public outcry is being fanned by wrong information being spread by the media, Elindi responded.

“Public outcry most of the time is motivated by information that is sent out that turns out to be inaccurate,” he said.

He also said: “Public interest is motivated by fake news most of the time, is motivated by wrong news, is motivated by people making claims of certain amounts when those amounts do not exist . . . Everyone wants to sensationalise the whole thing.”

Enercon spent about N$58 million to set up the service stations at the military bases and delivered value to the defence ministry, Elindi said. He continued that after Namcor had paid N$53.2 million to Enercon, N$35 million was paid back to Namcor for fuel that had been supplied to Enercon, leaving the company with N$18 million as the amount it actually received in his view.

ASSETS

Malakia Elindi (51), brother and business partner of Peter Elindi, also started to testify in the bail hearing yesterday.

He, too, complained that the media was reporting incorrect figures in connection with the matter in which he, his brother and seven other individuals have been charged.

According to a list of assets provided to the magistrate, Malakia owns assets valued at N$113 million and has financial liabilities totalling N$28.3 million, leaving him with a net assets value of N$84.7 million.

Malakia’s listed assets include fixed properties valued at N$73.9 million and with N$19.2 million in liabilities, motor vehicles valued at N$5.5 million, including a BMW X6 valued at N$2.3 million, household contents valued at N$9.3 million, and shareholdings in companies and close corporation memberships valued at N$23.8 million.

According to a list of Peter Elindi’s assets given to the magistrate on Monday, he owns assets valued at N$118.2 million and has financial liabilities totalling N$27.3 million, leaving him with a net assets value of N$90.9 million.

The bail hearing is continuing.

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