The National Petroleum Corporation of Namibia (NAMCOR) has taken legal action against Enercon Namibia, seeking its liquidation over an unpaid debt totalling N$114,663,026.50 as of November 2023. 

This debt arose from several agreements, including a Fuel Supply Agreement, a supplementary credit agreement, and a cession agreement involving Eco Fuel Investment CC.

NAMCOR claims Enercon defaulted on payments for diesel supplies and accrued interest charges on overdue balances. Despite multiple demands and informal payment plans, NAMCOR alleges Enercon failed to meet its repayment obligations, with no payments made since August 2023.

The dispute centres on three accounts. The MODVA Operations Account had an outstanding balance of N$40,295,160.27, including over N$5 million in interest. 

The NWR Operations Account had a balance of N$3,184,536.63 after a N$1 million payment in May 2023. 

The Debt Recovery Account, tied to Enercon’s assumption of Ecofuel’s obligations through a 2022 cession agreement, stood at N$71,186,650.66. 

Enercon had previously acknowledged a debt of N$68 million on this account and made partial payments of N$2.5 million between May and July 2023. NAMCOR contends that interest and payment defaults have caused the full balance to become due.

Enercon, co-owned by Peter and Malakia Elindi and military-owned August 26 Holdings, disputes the claimed amount. The company maintains that only N$6 million remains unpaid and accuses NAMCOR of breaching their agreements by ceasing fuel supplies in April 2023.

This legal action follows prior financial disputes between the two companies, including NAMCOR’s attempt to recover N$53 million related to storage facility transactions.