Corporate Graveyard: Namibian Oil Player Dies $260 Million Death as Corruption Scandal Claims Another Victim
A High Court order has placed Erongo Petroleum CC under final liquidation following months of financial struggles and legal disputes, dealing a decisive blow to the once-prominent petroleum company.
The ruling came after Namcor Petroleum Trading and Distribution pressed for urgent relief, citing Erongo’s ballooning debt of N$260.7 million since November 2023. Despite Erongo’s arguments about potential revival through a proposed US$44 million investment agreement with Pacific Creation Limited of Hong Kong, the court found that liabilities far outstripped assets.
Erongo Petroleum is implicated in the ongoing Namcor corruption scandal, with its executives facing allegations of fraud, corruption, and conspiracy. The company’s representatives, including the Elindi family, have been arrested in connection with charges linked to defrauding Namcor of close to N$400 million.
The liquidation marks the end of the road for Erongo, once positioned alongside Enercon as a rising player in Namibia’s petroleum supply chain.
Source: New Era Live
