Windhoek High Court dismisses former August 26 logistics MD’s legal challenge over N$2.5 million payment

The Windhoek High Court this week dismissed an application brought against August 26 Logistics by former managing director Salatiel Ntinda.

In June 2023, the board of directors of August 26 Logistics, a Ministry of Defence and Veteran’s Affairs outfit, suspended Ntinda from his position and subjected him to a disciplinary hearing related to a payment of N$2.5 million to a private entity called Penda Enterprises.

Penda Enterprises is managed by Jeremiah Shikongo.

Aggrieved over the decision of the board, Ntinda lodged a court application to challenge certain decisions the board had taken.
He wanted the decision to be declared unlawful and set aside.

He cited the August 26 Logistics board of directors, chairperson of the disciplinary hearing lawyer Clement Daniel and August 26 Logistics as respondents.

In his application, Ntinda alleged that there were only four directors present when a decision to suspend him was taken, whereas a shareholder agreement stipulates that five directors should be present to establish a quorum.

The payment was made on 24 May that year.

Ntinda allegedly told the company’s chief financial officer, Karel Nel, to process the payment.

The board of directors accused Ntinda and Nel of breaching their fiduciary duties to August 26 Logistics as they paid Penda Enterprises without the company’s authorisation.

According to High Court documents, the money was used for the purpose of meeting Penda Enterprises’ contractual obligation to supply goods to a third party in terms of a tender awarded to Penda Enterprises.

In August 2023, Ntinda was charged with failure to act in good faith and in the interest of the company, misappropriation of funds/assisting a third party to misappropriate money, and bringing the name of August 26 Logistics into disrepute.

Ntinda pleaded not guilty to all charges.

Deputy judge president Hosea Angula dismissed Ntinda’s application on Tuesday.

He also ordered Ntinda to pay August 26 Logistics’ legal costs.

“The matter is finalised and removed from the roll,” Angula said in the judgement.

Ntinda was not reachable yesterday. He did not respond to a text message sent to him yesterday either.

Board chairperson Kelvin Thembikosi promised to give a response, but has not done so at the time of going to print.

August 26 Holdings board chairperson Fillemon Shafashike yesterday said he was still waiting for a report from August 26 Logistics on the matter.

The Namibian reported in October 2023 that on 24 May, Ntinda received a letter from the then August 26 Logistics board of director’s chairperson, Petrus Nathinge, in which Ntinda was allegedly instructed to transfer an amount of N$2.5 million to Penda Enterprises.

Nathinge is also the deputy executive director of defence and veterans affairs.

Ntinda allegedly requested Nel to load the payment for release.

However, Nel is said to have reported the transaction to the board as he “was not comfortable with it”.

Five days later, Nathinge called an extraordinary meeting of the board of directors.

At this meeting, the documents show the board allegedly ordered that an acknowledgement of debt and surety agreement be entered into with Penda Enterprises to ensure the repayment of the loan.

Ntinda and Nel were subsequently suspended pending an investigation into their conduct.

Ntinda at the time allegedly justified his decision to authorise the payment, saying his decision received written instructions from Nathinge.

The instructions were allegedly marked ‘secret’.

Ntinda claimed he was not authorised to disclose it to third parties, including other board of director members.