Former NAMCOR Managing Director Immanuel Mulunga told the court that one of the reasons he lost his job was due to an error in the reallocation of funds used to purchase assets from Enercon for N$53 million.

The State revealed that, according to company policies, Mulunga was only authorised to approve procurement of up to N$25 million, and any expenditure above that required board approval. 

Mulunga explained that the transaction with Enercon was not treated as a new procurement but as part of an existing fuel supply agreement that resulted in the asset purchase.

The former MD told the court that the board does not approve individual transactions but signs off on the broader budget, which included allocations for the facilities purchased. 

He said the board had not approved the specific purchase and stated that the facilities were already accounted for in NAMCOR's budget. 

He attributed the oversight to his colleagues involved in the reallocation process.

Mulunga further testified that he does not know Leo Nandago, the ninth accused in the ongoing corruption case.

He said he only met Nandago in court and confirmed that all engagements between NAMCOR and Erongo Petroleum were handled by Austin Elindi, the son of co-accused Peter Elindi.

Defence lawyer Ileni Gebhardt, who represents Nandago, submitted that Austin Elindi was the main point of contact with NAMCOR. 

Mulunga confirmed this, stating he had no dealings with Nandago, who is linked to Erongo Petroleum.

He also told the court that NAMCOR's credit policy does not permit the initiation of criminal proceedings and said he does not know who submitted the complaint to the Anti-Corruption Commission.

Regarding the N$53 million paid to Enercon, Mulunga testified that the company was allowed to continue using the assets it had sold to NAMCOR.

Mulunga also testified that NAMCOR Petroleum Trading and Distribution is a private company and not a public entity, even though it is a subsidiary of NAMCOR.

The state alleges that funds from the subsidiary were embezzled after Mulunga signed contracts with Enercon Namibia and Erongo Petroleum, which are companies linked to the Elindi family. 

The state further alleges that Enercon was required to provide ownership documents for the assets it sold to the subsidiary.

When state prosecutor Basson Lilungwe questioned whether Enercon had submitted such documents, defence lawyers raised several objections. 

Magistrate Linus Samunzala sustained the objections, noting that Mulunga had already testified that NAMCOR accepted an asset register as proof of ownership.

Magistrate Samunzala also overruled a separate objection concerning the state's use of a document that was not disclosed to the defence. 

He said the bail hearing is not a trial, and the state is not required to share its case docket at this stage. 

The document in question, according to the state, shows that Mulunga was required to get board approval for expenditures over N$25 million.