Former NAMCOR Managing Director Immanuel Mulunga has denied allegations that he received a luxury Audi vehicle worth over N$3 million from businessman Victor Malima in exchange for facilitating fuel supplies to Malima's company, Eco Trading.

Testifying in the Windhoek Magistrate's Court, Mulunga said he never received the vehicle and denied involvement in fuel distribution, stating it fell outside his duties as managing director.

The charge sheet alleges that the vehicle was given to Mulunga after he approved a fuel deal for Malima.

Malima has since left the country following arrests related to the matter.

Mulunga rejected the broader charges as baseless. He said the contracts in question were signed under his authority, and there was no requirement in the agreement to seek board approval.

He denied the State's claim that nine service stations were acquired, stating instead that Namcor Petroleum Trading and Distribution, a subsidiary of NAMCOR, purchased bulk fuel storage facilities from Enercon. 

Mulunga said these facilities were owned by Enercon and not the Ministry of Defence, and that no documents had been submitted to prove otherwise.

He said the agreement between Enercon and the NAMCOR subsidiary was for the exclusive purchase of petroleum products and was terminated after he departed from the company.

Mulunga is accused of authorising payments to Enercon that exceeded his financial limits. 

He denied wrongdoing, also denied using his position for personal benefit.

His lawyer, Francois Bangamwabo, told the court the Anti-Corruption Commission had no jurisdiction to intervene, arguing that NAMCOR is not funded by the state and does not qualify as a public entity.

Bangamwabo further said public funds were not involved and that Mulunga had been cleared in a related matter before the Labour Commissioner.

He questioned why the ACC proceeded with the arrest despite ongoing legal proceedings elsewhere and called the arrest unjustified.

Mulunga has been in custody since his arrest two weeks ago. 

He informed the court that he poses no flight risk, has no connections abroad, and proposed a bail of N$10,000.

Regarding the N$53 million linked to the Enercon deal, the court heard that Victor Malima proposed a once-off reimbursement and cancellation of the agreement. 

NAMCOR accepted the cancellation but demanded a 7% interest on the amount. Writing to Enercon that the agreement remained valid pending payment.

The state will cross-examine Mulunga tomorrow.