Iuze Mukube
A High Court order has dealt a decisive blow to Erongo Petroleum CC, placing it under final order for liquidation, following months of financial struggles and court squabble.
The ruling comes after Namcor Petroleum Trading and Distribution (Proprietory) Limited pressed for urgent relief, pointing out the entity’s ballooning debts since November 2023 to Namcor in the amount of N$266.7 million.
The debt amount of N$266.7 million that Erongo initially owed to Namcor was reduced after the oil company called up a payment guarantee in the amount of N$6 million, hence the amount that is due is N$260.7 million.
Namcor further pointed out the entity’s unpaid contracts of assets and a lack of viable payment plans.
Despite attempts by Erongo, duly represented by Austin Elindi, arguing that the company still had prospects of revival through pending deals, the court was opposed.
It could have been found that its liabilities had far outstripped its assets, leaving no reasonable hope for recovery.
Elindi’s request for a halt in liquidating his company was on a new investment agreement with Pacific Creation Limited of Hong Kong, in which they committed to invest a sum of up to US$44 000 000, equivalent to N$774.2 million.
He had hoped the proceeds from the investment would be applied towards the liquidation and payment of creditors due to Namcor.
The rest would be for the company’s working capital and other business development needs.
Elindi said the court should decline the order for liquidation to make way for the finalisation of the proposed recovery of monies due to Erongo by Enercon and sourcing equity investments for six months.
However, the decision by the court marked the end of the road for Erongo, once plugged alongside Enercon as a rising player in the country’s petroleum supply chain.
Erongo Petroleum is implicated in the ongoing Namcor corruption scandal, with its executives, the Elindis and others, facing allegations of fraud, corruption, conspiracies, among other criminal charges.
Elindi as a representative of the entity was arrested in early August after his father and uncle, Peter and Malakia Elindi were detained for charges linked to defrauding Namcor of close to N$400 million.
It was revealed last Thursday that Elindi was hospitalised, which halted his formal bail application.
The matter was postponed to 25 August 2025.
Raymond Heathcote and Jesse Schickerling represented Namcor Trading and Raywood Rukoro represented Erongo Petroleum.
The matter was regarded as finalised and removed from the roll on 12 August 2025.