The state-owned Roads Contractor Company says it has launched an internal investigation into a N$30-million fuel supply deal, of which N$17 million’s fuel was never delivered.
The deal is linked to fugitive businessman Victor Malima, who was paid by the already struggling RCC, and who has failed to deliver on the deal since 2023.
The RCC has also paid Oshali Fuel Centre CC N$27 million, of which N$14 million’s worth of fuel was not delivered.
The fuel was to be delivered to various projects sites through Oshali owner Simeon Handjene, a man charged with fraud and corruption in the ongoing National Petroleum Corporation of Namibia (Namcor) corruption case involving more than N$380 million in unpaid debts.
RCC board chairperson Lea Namoloh in a press statement issued on Friday confirms that investigation into the matter is a matter of urgency.
“The board confirms it is fully seized with this matter and is treating it with the seriousness and urgency it deserves.
“In line with the RCC’s board governance charter, the board has instituted a thorough internal investigation into the transactions raised,” she says.
The Namibian on Friday reported that payments made between September 2023 and July 2025 involved transactions that were personally approved by RCC interim chief executive Dasius Nelumbu.
The RCC, through Nelumbu, has since demanded that the outstanding fuel be delivered or that the money be refunded, failing which it would take legal action.
Namoloh says the investigation is examining the relevant procurement processes followed.
“The legal status of the matter, including any proceedings already instituted or under consideration, also forms part of the board’s verification process,” she says.
She says the board will hold those involved accountable.
“Should the investigation confirm misconduct, the board will act firmly to hold those responsible accountable.
“As part of its fiduciary responsibilities, the board regards the protection of public resources as a fundamental responsibility and has adopted a principle of zero tolerance towards the misappropriation of resources and any breach of RCC’s processes and procedures,” she says.
Anti-Corruption Commission spokesperson Marina Matundu last week told The Namibian that the commission was not looking into the matter.
“The Anti-Corruption Commission is not investigating this matter,” she said.
THE FIGURES
The Namibian reported on Friday that a reconciliation letter from Nelumbu to Oshali dated 18 February shows that the RCC made its first payment of N$17.5 million to Oshali Fuel Centre on 21 September 2023 for fuel intended for the Engoyi project site.
Of this amount, fuel worth N$6.9 million remained outstanding.
On 30 November 2023, the RCC paid a further N$3.4 million for fuel destined for the Onesi project. But fuel worth N$351 000 remained outstanding.
The Namibian understands that some of the sites had not begun operating when the fuel was paid for.
For the E-Dams project, the RCC paid N$1.2 million to Oshali Fuel Centre on 28 December 2023. The company had not delivered the fuel covered by this payment, leaving the full amount of N$1.2 million outstanding.
Despite the outstanding deliveries, the RCC made another payment of N$2.7 million on 30 April 2024 for fuel intended for the Bethanie project.
The reconciliation shows that the full amount remained outstanding, indicating no fuel was delivered against this payment.
Again, on 30 April 2025, the RCC paid N$2.7 million to Oshali Fuel Centre for fuel intended for the Kamanjab project.
The entire amount is outstanding.
LETTER OF DEMAND
In the letter, Nelumbu says Oshali Fuel Centre remained in breach of its agreement with the RCC despite the previous demands.
The RCC warns that failure to pay would result in legal action without further notice.
“Should you fail to make payment within the stipulated period, the RCC’s legal department has instructions to institute legal proceedings against your company,” Nelumbu says.
He says the proceedings would seek recovery of the outstanding amount, accrued interest and legal costs on the appropriate scale.
The demand raises questions about how the state-owned company continued making payments to Oshali Fuel Centre despite allegedly not receiving the full quantities of fuel it had paid for.
Nelumbu says he had demanded payment for the fuel supply since 2023, when Oshali delivered only 680 561 litres of fuel out of the nearly 1.4 million litres ordered.
COUNTEROFFER
Responding to RCC’s letter of demand, Oshali Fuel Centre, through Handjene, proposes a strategic partnership with another oil company which would help settle the N$14 million in outstanding fuel.
In a 3 March proposal to Nelumbu, which The Namibian has seen, Handjene requests the roads company to keep buying fuel and suggests that orders be made out in another company’s name.
“Oshali will allocate 20 cents [for every litre ordered] towards bringing down outstanding balance due to the RCC. All orders will only become due and payable by RCC upon full delivery of the said orders,” he says.
The court granted Handjene bail in an amount of N$50 000 following his arrest by the ACC in April on corruption charges in the Namcor case.
He was charged with theft and money laundering.
The matter has been postponed to 28 October for further legal proceedings.
The Namibian could not reach Handjene by the time of going to print.
