Ex-Namcor manager joins entity owing national oil company N$120m

… Namcor investigated Olivia Dunaiski for approving N$28m to Erongo Petroleum CC – her new employer

Former National Petroleum Corporation of Namibia (Namcor) commercial manager Olivia Dunaiski has been hired by Erongo Petroleum CC, a company she is accused of irregularly approving transactions worth around N$28 million while she worked at the national oil company.

Namcor is now chasing Erongo Petroleum CC for owing the state oil company N$120 million.

Erongo Petroleum CC is owned by businessman Austin Elindi, who is also a shareholder in another controversial

military fuel supply entity called Enercon.

Enercon is an entity of interest at Namcor.

Namcor took Enercon to court last year for struggling to pay back around N$60 million to the national oil company.

Dunaiski resigned on 8 September 2023 after Namcor enforced an investigation into transactions, including how she allegedly authorised without approval a transaction worth N$28 million to Erongo Petroleum CC.

Sources said this transaction was done despite Namcor having put a moratorium on doing business with companies that were in arrears.

The Namibian understands that Erongo Petroleum CC had a credit limit of N$10 million, yet Dunaiski with other former Namcor managers allegedly approved oil deals with the company worth over N$28 million.

This prompted Namcor to launch an investigation.

Dunaiski, with other managers, subsequently resigned.

She got the job at Erongo Petroleum late last year.

At the time of leaving Namcor, Dunaiski was acting as an executive for sales and marketing.

“Yes, I am among those who resigned, but I don’t want to comment,” Dunaiski said last year, but didn’t respond to questions sent to her this week.

The Namibian now understands that Namcor is at an advanced stage to recover its debt from Erongo Petroleum.

Dunaiski is also among former Namcor employees who have been taken to court together with Enercon.

‘STRICTLY CONFIDENTIAL’

Elindi yesterday said: “ . . . we can both agree that any story about this company does not benefit the public in any shape or form. We will continue keeping any developments between us and all our stakeholders strictly confidential.

“The said individual (Dunaiski) is known to me, but not employed by Erongo Petroleum. Our company may, however, make use of the services of any Namibian provided they are qualified to do the job . . .”

Elindi denied any possible conflict of interest.

“If that was true, it would also be true that executives at the highest level of chief executive and managing director level would not be able to work for competitors . . . We should refrain from redefining conflict of interest in a manner that suits our story line,” he said.

CONFIRMATION

Namcor spokesperson Utaara Hoveka this week confirmed the judicial proceedings.

“In the interest of allowing the judicial process to fairly and independently run its course, we cannot comment,” he said.

Dunaiski this week declined to confirm her role at Erongo Petroleum.

Documents from a separate court case involving United Africa Group, however, confirms that Dunaiski is employed by Erongo Petroleum as an executive for commercial: sales and operations.

The court documents that confirmed Dunaiski’s new job also revealed a corporate fight between Erongo Petroleum and United Africa Group.

It shows that Erongo Petroleum owes United Africa Group over N$100 million for unpaid oil supplies.

When Erongo Petroleum failed to honour its debt, United Africa Group founder Haddis Tilahun started approaching clients, warning them not to do business with Erongo Petroleum, according to court documents.

The documents show that Erongo Petroleum then approached the court to stop United Africa Group’s founder from doing so.

The affidavit signed by Dunaiski was brought to court on 22 February.

Erongo Petroleum won the case on 29 February and the High Court told United Africa Group to stop approaching clients that belong to Erongo Petroleum.

Tilahun couldn’t be reached for comment.

‘A SHAM AND FRAUD’

The Enercon transaction that rises up to N$60 million is labelled by Namcor as a sham and fraud.

Enercon is owned by brothers Peter and Malakia Elindi, as well as military company August 26 Holdings.

The joint venture has had a 15-year contract since 2016 to supply fuel to the Ministry of Defence and Veterans Affairs, as well as to build and refurbish oil depots.

It also has a 10-year contract to do the same for Namibia Wildlife Resorts across the country.

Central to the transaction is the N$53-million payment Namcor made to Enercon last year as part of a transaction which would have seen the national oil parastatal take over the fuel supply contract and related infrastructure business with the Namibian Defence Force.

The transaction also included Namcor buying a number of oil storage facilities from Enercon.

However, Enercon was forced to reverse the agreement with Namcor due to objections from the military, but failed to repay the N$53 million immediately.

It turned out that the oil storage facilities and tankers sold to Namcor actually belong to the defence ministry, while Enercon is left to pay Namcor back in monthly instalments of N$500 000.

Dunaiski and other former managers including suspended managing director Immanuel Mulunga, had been cited in court documents as problematic during their time at Namcor.

Other ex-Namcor employees who form part of the investigations include former finance executive Jennifer Hamukwaya, former supply and logistics manager Cornelius ‘Cedric’ Willemse and retired former acting executive for sales and marketing Davis Maphosa.

They have also previously denied any wrongdoing.

WHY THIS STORY MATTERS:

For years, The Namibian has reported about questionable practices by parastatal executives who resign and then take jobs with private companies they dealt with in their previous roles. In this case, Olivia Dunaiski is accused of joining the very company she is alleged to have assisted unfairly while at Namcor.