WALVIS BAY – A Namibian company, Ikhaya Somandla Family (ISF) Trading Enterprises, is facing a legal dispute over an alleged unpaid international consulting debt of N$2.6 million.
ISF Trading is a player in Namibia’s energy sector and plans to build a 300 000-barrel-per-stream-day modular oil refinery at Walvis Bay. Portugal-based international consultant Ana Lúcia Rodrigues Santos was hired by ISF Trading to help attract investors for the Walvis Bay Green Energy Complex. Santos was expected to arrange meetings, present the investment and provide strategic support throughout the process to successfully land in investor for the project. Santos was to receive a 1% share in Dune Seven Energy once she secured investors and financial instruments for the project.
The shareholding was part of her payment, together with cash fees at different stages of the funding.
She would only get the equity if the US$10 million (about N$190 million) investment and financial guarantees were successfully secured.
In return, ISF Trading was to transfer the share and pay fees once the investment was complete.
The planned refinery was expected to process imported crude oil before transitioning to locally produced crude around 2027-2028 as Namibia’s oil production grows.
Documents seen by New Era reveal that the facility is part of a larger Green Energy Complex, which also includes a 500 MW renewable energy power plant, a 4 000m³ per day desalination plant, and a crude and refined product storage facility. It would have been constructed on portion 46, a 305-hectare industrial site in Walvis Bay, which has been conditionally allocated for the project, pending environmental and regulatory approvals.
Crumble
However, the two parties are now dragging each other following the consultation agreement that was signed last May.
Santos said she carried out extensive work to facilitate the investment, including meetings with banks in Lisbon, presentations to investors in Europe, the United States and Angola, as well as legal and financial due diligence.
She now claims that the company has not settled the outstanding invoice or transferred the agreed 1% shareholding, which forced her to suspend further work.
“We have attempted all diplomatic channels to resolve this debt, but the directors have ceased all communication. This ‘ghosting’ behaviour raises serious questions about the transparency and financial capacity of a group entrusted with national strategic projects,” Santos said.
Locus standi
In response, ISF Trading, through law firm Tjitemisa & Associates, denied the allegations.
The company said Santos “failed to fully and properly perform” under the agreement, which they say means she is not entitled to the fees claimed.
ISF Trading Enterprises (Pty) Ltd, however, denied the allegations.
The company that responded to New Era through its law firm, Tjitemisa & Associates, said it does not owe Santos or her company any money.
They said that Santos failed to fully and properly perform in accordance with the agreement.
For this reason, they said, she is not entitled to the fees she claimed.
“Any suggestion that we have been avoiding or evading obligations is completely false. While we may consider facilitating the disputed invoice as a matter of commercial goodwill once certain investment funds are drawn, this is an act of grace and not an admission of liability,” the law firm states.
The company confirmed it remains solvent and continues trading normally.
“ISF Trading has never been served with a statutory demand under Section 345 of the Companies Act, and no court has found that we are unable to pay our debts,” the statement added.
ISF Trading also highlighted its international recognition and ongoing projects.
“We continue to develop major energy and infrastructure initiatives across Namibia and the wider SADC region. These projects, including green energy developments and oil and gas midstream infrastructure, involve local and international partners and substantial funding. They are expected to create jobs and support industrial growth,” the statement adds.