Iuze Mukube
As the curtain fell on the ongoing Namcor corruption scandal case yesterday, details emerged pointing to a tale of how public resources were allegedly looted at an industrial scale by once-powerful individuals and their cronies.
Playing out in court this week, arguments brought to light elements of close-knit ties and how beef was used to entice some of the accused and how bribes lubricated deals.
Chiefly, it was alleged that former Namcor managing director Immanuel Mulunga received an Audi Q8 SUV valued at N$3.2 million from fugitive Victor Malima.
Malima is wanted in connection with fraud and corruption in the Namcor case.
In addition, businessman Peter Hango Elindi, the former director of Enercon, was at the centre of the matter.
The State alleges that in 2022, Elindi defrauded and pretended to sell nine service stations to Namcor while these stations were encumbered to the Ministry of Defence and Veterans’ Affairs due to a 15-year agreement signed in 2016. In business, ‘encumbered’ means an asset, like property or equipment, has a claim or restriction against it, limiting its free use or transfer.
Through this false pretence, the State says Elindi induced Namcor to pay N$53 million as the purchase price for the nine service stations despite the restrictions.
These fuel stations never ended up in Namcor’s hands.
Additionally, Elindi was charged with contravening Section 34(a) and (b) of the Anti-Corruption Act.
Consequently, between 20 and 21 July 2022, Elindi allegedly corruptly offered N$2.5 million to Cornelius Petrus Willemse and Jennifer Hamukwaya as an inducement to facilitate the purchase of the nine service stations.
According to the prosecution, Willemse received N$960 000 for beef, lamb and game carcasses, and another N$9 million was transferred to Eco Trading – owned by fugitive Malima – from Enercon.
The State further alleges that the N$960 000 paid to Willemse’s personal bank account, was part of the money laundered through Enercon and Eco Trading.
Enercon had received N$53 million from Namcor for the sale of nine fuel stations but paid back N$35 million to Namcor, with N$18 million outstanding.
Of this amount, N$9 million was transferred to Eco Trading.
This N$9 million, the State further alleges, then trailed to several other individuals, of whom Malima transferred N$1 million to Quality Meat Supplies and purchased a vehicle for Mulunga.
Crux
The State’s arguments rested on that the transaction was cloaked in misrepresentation, with Enercon failing to deliver what was contractually agreed and internal memos and correspondences showing that key decision-makers were either misled or bypassed.
Additionally, the non-repayment from Enercon demonstrated a deliberate intent to deceive and benefit unlawfully and that the deal was never properly authorised.
The State further argued that the accused should be denied bail, citing having a strong case, public interest, and the interest of justice as the reasons.
The State also highlighted concerns about potential interference with witnesses and the possibility of Elindi fleeing the country, given the seriousness of the charges.
The defence, however, denied any criminal intent, insisting that the transaction was a commercial agreement, fully backed by Namcor officials and approved through internal documentation.
At the core of the argument is that the State is forcefully criminalising a matter that should be dealt with via civil suits and commercial remedies.
The defence’s arguments include that Elindi did not defraud Namcor but instead entered a legitimate and lucrative business deal with the national oil company.
Additionally, the amount in question, initially N$55 million and later adjusted to N$53 million, was mutually agreed upon. Namcor allegedly sought to undervalue the deal to position itself favourably with the Ministry of Defence.
Moreover, Elindi never had the intention to flee and has consistently cooperated with authorities, stating that he has strong ties in the country, with assets valued over N$118 million and employees under his employment.
The defence presented an internal memorandum in court allegedly from Olivia Dunaiski to Mulunga that showed Namcor had approved the takeover of Enercon’s assets.
Furthermore, several Namcor officials, including Willemse, Olivia Dunaiski, and Davis Maposa, signed the agreement, indicating the institution’s full knowledge of the agreement.
Also in contention was that some of the charges the accused faces “don’t even exist in law,” his lawyer Sisa Namandje argued.
He also accused the state of manipulating the statutory law books to fit their narrative.
In no uncertain terms, Namandje accused his opponents of projecting themselves as “having prosecutorial balls” to take on anyone, all in the name of public relations and marketing.
The defence further accused the state of attempting to make an example of the Namcor executives without following the proper legal route.
Elindi also told the court that he was not aware of the purported N$960 000 transaction to Willemse nor the use of the N$9 million that Eco Trading received from Enercon.
Elindi also denied another accusation that he allegedly transferred N$500 000 to Panduleni Hamukwaya through his business Panduleni Farming.
Not involved
Meanwhile, Lydia Elindi, one of the accused in the case, maintains she had no involvement in the alleged offences. Her husband, Malakia Elindi, also testified that Lydia’s arrest was unjustified, as she had no dealings with Enercon Namibia. Malakia, who was a shareholder and director of Enercon in 2022, claimed that Lydia did not conspire to receive N$3.8 million from Enercon through Onyeka Clearing and Forwarding, a close corporation he has solely managed since 2007. He explained that although Lydia is listed as a member of Onyeka, she has never been involved in its day-to-day operations. Malakia argued that their joint arrest has not only caused personal distress but also negatively affected their family businesses. He said the arrest has disrupted the operations of his companies, including DML Copper Exploration, Elindi Property CC, Anymore Financial Services, and Anymore Production Studio.
Namandje also criticised the state for delaying the bail hearing, describing the continued scrutiny of undisputed documents as unnecessary.
Other accused alongside the Elindis are Mulunga, Willemse, Jennifer Hamukwaya, Dunaiski, Panduleni Hamukwaya, and Leo Stefanus. The 10th suspect is Malima, who is still on the run.
Five entities affiliated with these alleged corrupt activities include Enercon Namibia, Onyeka Clearing and Forwarding, Nyambali Medical Centre, Panduleni Framing, and Parkwood Petroleum Logistics.
The matter continues in court.
Photo: Heather Erdmann