Staff Reporter<\/p>\n\n\n\n
PETER Elindi, the former managing director of Enercon \u2014 a company embroiled in fraud allegations which led to the loss of N$53 million by NAMCOR after the sale of nine service stations that never materialised for NAMCOR\u2019s use \u2014 said that he did not need consent from August 26, which owned 50%, to sell the said assets.<\/p>\n\n\n\n
Elindi is accused of making a misrepresentation and fraudulently selling nine service stations to NAMCOR, which were already encumbered under a 15-year agreement with the Ministry of Defence and Veteran Affairs, resulting in NAMCOR not having access to the service stations.<\/p>\n\n\n\n
State Prosecutor Basson Lilungwe put it to Elindi that Enercon could not sell the assets without the permission of the other 50% owner, which was August 26, a company owned by the Ministry of Defence.<\/p>\n\n\n\n
\u201cThese assets do not belong to them, thus the Ministry took offence with you selling them. Those assets are not yours; they are on the property of the Defence Ministry,\u201d Lilungwe said.<\/p>\n\n\n\n
Elindi, however, said that Enercon built these assets, and that retired Brigadier General James Auala represented August 26 and at the same time was a director in Enercon, but that August 26 did not discharge their obligation to buy the 50% shareholding in Enercon as they did not pay up.<\/p>\n\n\n\n
He added that Auala\u2019s signature was not on the asset purchase agreement.<\/p>\n\n\n\n
\u201cYou told me about company laws. Enercon had three directors; two of them signed \u2014 that made up the quorum,\u201d Elindi said.<\/p>\n\n\n\n
He added that during the sale of the service stations, there were issues between August 26 and Enercon as they had not made their payment for the supply of fuel by Enercon.<\/p>\n\n\n\n
\u201cSimply to say, Enercon as a private entity was not required, and there was no agreement to that effect, that it would require consent from the Ministry of Defence and Veteran Affairs,\u201d Elindi said.<\/p>\n","protected":false},"excerpt":{"rendered":"
Staff Reporter PETER Elindi, the former managing director of Enercon \u2014 a company embroiled in fraud allegations which led to the loss of N$53 million by NAMCOR after the sale of nine service stations that never materialised for NAMCOR\u2019s use \u2014 said that he did not need consent from August 26, which owned 50%, to …<\/p>\n","protected":false},"author":10,"featured_media":378625,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33,24],"tags":[],"class_list":["post-378624","post","type-post","status-publish","format-standard","has-post-thumbnail","category-breaking-news","category-news"],"yoast_head":"\n