Staff Reporter
STATE Prosecutor Basson Lilungwe today commenced with the cross-examination of one of the fraud and corruption accused in the ongoing NAMCOR corruption case and put it to the accused, Peter Elindi, that one can “pierce the corporate veil”, as directors cannot hide behind the legal persona of companies when entering into contracts, and that directors can also be held liable for fraudulent actions.
Peter Elindi, who is charged with fraud for selling nine service stations to NAMCOR which were already encumbered under a 15-year agreement with the Ministry of Defence and for paying a bribe to two former NAMCOR executives, however, said that he does not have comment on company directors being held liable for company actions, a provision available in section 322 subsection 5 of the Criminal Procedure Act.
Elindi is the former Managing Director of Enercon, a company which is alleged to have committed credit fraud.
Elindi, during cross-examination by Mulunga’s lawyer, also added that Enercon provided proof of the nine service stations, and that it provided a list of all the nine assets and their value, and that this was compiled by an accountant.
Furthermore, Elindi denied that he paid a bribe of N$2.5 million to accused two, Cornelius Cedric Willemse, for him to approve the alleged fraudulent sale of the service stations to NAMCOR.
The matter continues in the Windhoek Magistrate’s Court.
