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[QUOTE="Munyaradzi Mafaro, post: 43527, member: 636"]
Two fuel companies face closure after owing almost 400 million dollars to the government petroleum company. Judge Shafimana Ueitele ordered Enercon Namibia and Erongo Petroleum into provisional liquidation last week. The firms failed to pay Namcor Petroleum Trading for fuel deliveries over several years. Austin Elindi runs both companies and signed agreements requiring payment within 30 days. Court papers show the debts kept growing from 2022 through 2023.

Erongo Petroleum owed 23.5 million dollars during February 2022 but the amount jumped to 266.7 million dollars after 20 months. Enercon started with 39 million dollars debt and reached 114.6 million dollars during the same period. Company director Victor Malima claimed the court figures were wrong and too high. Lawyers for both firms argued that Namcor itself should have filed the bankruptcy case instead of its subsidiary company.

The judge found that proper authorization existed for the legal action against both fuel companies. Namcor trading board appointed a director to handle the bankruptcy applications during June last year. Formal payment demands went out during March 2024 but neither company paid their outstanding bills. The Close Corporations Act and Companies Act allow creditors to force bankruptcy when debts remain unpaid after official demands.
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