Africa-Press – Namibia. In response to the court matter in which the National Petroleum Corporation of Namibia (NAMCOR) has taken a company named Erongo Petroleum to court demanding that it be liquidated to regain a debt of over N$200 million, the owner of Erongo Petroleum, Austin Helao Elindi, has said Namcor knowingly relaxed its terms of debt repayment at its own discretion and allowed amounts to balloon.
“During July 2023, I met with the deponent and other staff members of the applicant (Namcor) at the applicant’s head office boardroom. The meeting was called by them to discuss a payment proposal. We discussed various payment options, and thereafter a payment plan was transmitted. They never reverted on their stance as to the proposed payment plan, despite them having initiated it. During November 2023, I met with Mr. Shwiwana Ndeunyema, who, on behalf of the applicant, discussed various restructured payments with me, and in particular, the resumption of trading. The applicant knowingly acted in contravention of its own policy, or knowingly relaxed its terms at its own discretion. The First Respondent (Erongo Petroleum) is not to be blamed, and the alleged collusion is denied,” Elindi said in a replying affidavit.
Elindi added that it is the applicant (Namcor), and not the First Respondent (Erongo Petroleum), that regulates its own internal thresholds as to credit limits, and the respondent (Erongo Petroleum) has no control over that process.
“Exceeding the approved credit limit was permitted from time to time because the parties agreed without reservation of rights to explore and agree on alternative repayment terms,” Elindi said.
According to the founding affidavit of Engelhardt Kongoro, a director for Namcor, on or about 10 September 2020 and at Windhoek, Erongo Petroleum entered into a written Fuel Supply Agreement with Namcor. Further to this, he added that on 20 August 2020 and at Windhoek, Erongo Petroleum entered into a further agreement with Namcor.
In terms of the Fuel Supply Agreement read together with the Credit Agreement, Namcor would sell Erongo Petroleum a wide range of petroleum products, and that payment for the products had to be made by Erongo Petroleum against the applicant’s invoices upon receipt thereof, or within 30 days from the date of the statement.
Austin Elindi, the owner of Erongo Petroleum, is also linked to Enercon, an entity 75% owned by brothers Peter and Malakia Elindi, as well as the NDF’s business wing (25%), August 26 Holdings. Enercon was also dragged to court by Namcor for owing the State-Owned Enterprise (SOE) N$114 million linked to fuel supply deals.
According to the Namibian newspaper, August 26 Holdings Chief Executive Ndajoina Shalumbu in April last year said Enercon Namibia has new owners and management, although no changes are reflected in the Business and Intellectual Property Authority’s files.
Shalumbu said Peter and Malakia Elindi were no longer partners in the venture as their stake was transferred to Peter’s relative Victor Malima and son Austin Elindi. Malima replaced Peter Elindi as managing director of Enercon.
Enercon is also embroiled in another court matter with Namcor, wherein the SOE seeks to recover N$53 million, which it paid Enercon for storage facilities that already belonged to the government.
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