The Windhoek Magistrate's Court continues to hear evidence in the bail application involving former NAMCOR executives and directors of Enercon, following the disputed N$53 million fuel supply transaction linked to the Ministry of Defence.

Prosecutor Menecia Hinda commenced with cross-examining one of the accused, Malakia Elindi, today.

State prosecutor Menencia Hinda revealed that the state will call a witness who will inform the court that Eco Trading, a company owned by fugitive businessman Victor Malima, received N$9 million as part of the transaction, despite not being licensed to trade in fuel by the relevant authorities. 

Hinda further said NAMCOR's former Managing Director, Immanuel Mulunga, did not have the authorisation from the NAMCOR board to approve the payment. 

Enercon Director Malakia Elindi responded that he had no obligation to verify whether Mulunga had the required authority. 

He also told the court that he could not have known whether Eco Trading was licensed to deliver fuel.

Elindi further stated that former NAMCOR finance executive Jennifer Hamukwaya was made a signatory to the bank account into which the N$53 million was paid. 

He said her inclusion was intended to ensure the settlement of the N$35 million debt Enercon owed to NAMCOR. 

The state argued that Hamukwaya was added as a signatory before the agreement was finalised.

Despite the payment, NAMCOR did not deliver any fuel to the Ministry of Defence under the agreement. 

Enercon continued supplying fuel to the ministry after the sale. 

Elindi testified that this was due to national security concerns and maintained that Enercon was under no legal obligation to notify the ministry of its agreement with NAMCOR.

The prosecution alleges that Enercon sold rights it did not legally possess. 

According to the state, the company did not hold legal ownership over the fuel supply rights transferred to NAMCOR.

Elindi denied that Enercon illegally sold nine fuel stations to NAMCOR. 

He claimed that the facilities were built using Enercon's funds. 

Under cross-examination, Elindi confirmed that Enercon provided an asset register to NAMCOR but without submitting ownership documents for the fuel stations constructed on the various properties of the Ministry of Defence. 

He said NAMCOR did not object to the documentation provided and maintained that the asset register was regarded as an ownership record.

The agreement between Enercon and NAMCOR required the Elindi brothers to submit an asset register, ownership documents, and all necessary certificates. 

When questioned on whether he owned the nine stations built on Ministry of Defence land, Elindi did not give a definitive answer, instead saying Enercon held rights to the properties.

Elindi told the court that NAMCOR was not blocked from taking possession of the assets and that the company simply cancelled the transaction. 

Elindi's legal team accused the State of withholding critical bank records, claiming that the prosecution failed to disclose bank statements relevant to the case.

The bail hearing remains ongoing.