The state has outlined the money trail of N$9 million allegedly distributed among several individuals following a $53 million payment by NAMCOR to Enercon for the purchase of nine fuel stations.
During the ongoing bail proceedings in the Windhoek Magistrates' Court, State Prosecutor Basson Lilungwe informed the court that after receiving N$53 million from NAMCOR, Enercon returned N$35 million to the state-owned oil company to settle outstanding fuel debts.
This left a balance of N$18 million in Enercon's bank.
According to the prosecution, Enercon transferred more than N$9 million to Eco Trading, a company owned by fugitive businessman Victor Malima.
The state alleges that Malima used part of the funds to make a payment of over $1 million to Quality Meat Supplies and purchase a motor vehicle for former NAMCOR Managing Director Immanuel Mulunga.
Further allegations include that accused Cedric Willemse received N$960,000 in his personal bank account, and Panduleni Hamukwaya, husband to one of the accused, a former Namcor executive, received N$500,000.
Prosecutor Lilungwe argued that the payment to Willemse constituted a bribe in exchange for approving the Enercon transaction.
Willemse's legal representative objected to the allegation.
Malima, who is reported by the ACC to have fled the country, is related to the wife of Peter Elindi, the former chairperson of Enercon and one of the accused in the case.
Elindi told the court that his involvement with Eco Trading ended after Enercon paid the company approximately N$9 million for fuel supply and that he had no influence over how Malima used the funds.
During cross-examination, Lilungwe asked Elindi whether he was aware of legal provisions allowing directors of companies to be prosecuted for dubious business dealings.
Elindi said he had no comment. He was also asked whether he had provided proof that Enercon owned the nine fuel stations sold to NAMCOR.
Elindi said he submitted a list of assets and an asset register indicating that Enercon had invested in the properties.
The prosecution stated that Enercon's supply agreement with the Ministry of Defence was cancelled before the asset purchase agreement with NAMCOR.
Elindi responded that the transaction between Enercon and NAMCOR was not linked to the Ministry of Defence.
He maintained that the service stations remained Enercon's property. He did not directly confirm whether proof of ownership was submitted to NAMCOR, but said a list of assets had been provided.
Elindi stated he was not the sole owner of Enercon. The State said this suggested he lacked the authority to sell the company or its assets.
Lilongwe told the court that August 26 Holdings, a company owned by the Ministry of Defence, held a 50 percent stake in Enercon at the time of the sale.
Defence lawyer Sisa Namandje responded that retired army brigadier James Auala had signed the agreement on behalf of August 26 Holdings and that no clause in the sale agreement required prior consent from the Ministry of Defence.
Elindi testified that he acted in what he believed were the best interests of the Ministry of Defence.
The bail hearing continues.