In a twist in the ‘Oil-rot’ saga, details have emerged that Namibian Defence Force-owned company, August 26 Holdings, signed surety on behalf of Enercon for a loan from the Development Bank of Namibia for the purchase of petroleum products and fuel management systems. 

DBN is suing Enercon, the Elindi brothers, August 26, and some other miscellaneous companies to recover the loan.

The application was filed yesterday in the Windhoek High Court. 

Enercon received three loans from the DBN, the first loan was for N$28 million tendered on 25 February 2011 with interest at prime rate plus 0.35%, calculated daily and compounded monthly. The parties were to repay the loan in 93 equal instalments which they failed to do, according to court documents filed by DBN. 

A second loan was applied for on 27 May 2015 for N$18 075 000 without the first loan being paid in full. An agreement was reached between Enercon, represented by Peter Elindi, and DBN that the outstanding amount on the first loan was N$13 440 934.08 and was to be repaid in 120 equal monthly instalments. 

August 26 signed unlimited surety on this deal, which meant they are liable for the loan issued. 

The Elindi brothers ceased Sanlam life insurance policies to the value of N$8 million each, while a company called WholesalePurchasingsignedover a mortgage bond of N$3 million in respect of Unit 1, Brabant while Bonsec Investments 174 CC signed over the rights to Unit 15 City View valued at N$2.075 million as surety and Bonsec Investments 175 CC signed over the rights to Unit 16, City View valued at N$2.075 million. 

It was further agreed that Enercon will pay a restructuring fee of N$134 409.34 plus Value Added Tax. According to the agreement, should Enercon fail to honour the loan agreement, all signatories to the deal would be liable for the loan. 

Overdue payments would bear interest of 2% per annum compounded monthly. All legal costs in relation to the recovery of the loan will also be for the account of the loanees. 

The second loan amount was disbursed to Enercon on 2 June 2015, and the first instalment was due on 31 October 2015. 

However, court documents show, Enercon breached the loan agreement by failing to pay the monthly instalments as they became due and has since its inception only paid 55 instalments totalling N$18 738 456.54 and has not paid any instalments since 1 February 2024 and was at 31 May 2025 in arrears in the amount of N$19 447 029.04. 

After failing to repay the loan, DBN and Enercon concluded a second written agreement to the loan agreements in which DBN would advance Enercon another N$7.225 million with a restructuring fee of N$64 832.46 to be repaid in 144 equal monthly instalments to which August 26 signed unlimited surety. 

Again, the court documents show, Enercon failed to repay the loan and only made 47 payments in the amount of N$6 561.321.20, and has not paid any instalments since 10 October 2022 and is in arrears of N$9 436 723.70 in relation to the additional loan. 

DBN says in the current circumstances, there are no viable alternative or reasonable prospects that the defendants would be able to settle its indebtedness towards it and the only way for it to recuperate its funds is if the attached properties are declared executable. In the premises they want judgment against the eight defendants, namely Enercon, Peter Elindi, Malakia Elindi, August 26, Bonsec Investments 174 CC, Bonsec Investments 175 CC, and Rodrigo Pimenta in the amount of N$28 883 752.74. 

DBN is further seeking interest of prime rate plus 3% per annum calculated daily from 1 June 2025 and additional 2% per annum on all overdue amounts. 

-rrouth@nepc.com.na