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CLARITY FIRST: Angolan national oil company Sonangol has returned money meant for its oil blocks eyed by Namcor and its partners. PHOTO: REUTERS
CLARITY FIRST: Angolan national oil company Sonangol has returned money meant for its oil blocks eyed by Namcor and its partners. PHOTO: REUTERS

Sonangol returns Namcor’s oil block money

Angolan entity furious over Namibian fights
The Angolan national oil company has given Namcor and its joint venture partners 48 hours to declare all payments as above board, or forget the deal altogether.
TOIVO NDJEBELA
Angolan national oil company Sonangol has refunded N$524 million to Sungara Energies, a London-based joint venture entity co-owned by the National Petroleum Corporation of Namibia (Namcor). This after allegations that the money paid to the Angolan entity was not appropriately approved in Namibia.

Sonangol is allegedly unhappy with the negative publicity the deal has dragged its name into, following media reports in Namibia that it received funds that were not approved by the Namcor board.

The specific transaction in question, totalling over N$100 million, was part of a deposit to acquire 10% in two Sonangol oil blocks by Sungara’s partners.

Sungara is owned in equal proportion by Namcor, Sequa Petroleum and Petrolog Group. Namcor paid the N$100 million on behalf of Sequa Petroleum, whose own funds were allegedly not ready by the payment deadline set by Sonangol.

Worried that the deal would collapse, Namcor managing director Imms Mulunga allegedly decided to step in and authorise the N$100 million payment from Namcor on behalf of Sequa.

The Namcor board of directors accused Mulunga of making this transaction without its authorisation.

In good faith

Following widely reported accusations that Mulunga made the million-dollar payment without approval – an allegation that has become subject of an Anti-Corruption Commission (ACC) investigation - the Angolan oil company decided to return the funds in order to protect its name, officials told Namibian Sun.

Sequa is said to have finally paid for its own stake in the oil blocks and Namcor is set to receive its N$100 million back.

Mulunga is currently on suspension, but none of the charges he’s facing relate to the Angolan oil deal.

He has maintained his innocence in that matter, saying the transaction was made in good faith and the money had been received by Sonangol as intended.

Namibian Sun understands that ACC has completed its investigation into the transaction and will soon announce that Mulunga has been cleared of any corruption in the matter.

In the meantime, Sonangol has deposited US$26.7 million (N$524 million) back into Sungara’s bank account, saying it does not want anything to do with the money until Namcor self-corrects, if necessary, and confirms that the funds have been appropriately approved.

“Sonangol has given Sungara 48 hours to clear that situation up, or forget about the deal,” an official close to the matter said.

“They are very unhappy with how the Namcor drama has dragged their name into negative publicity. Sonangol is an international trading company and they take their reputation very seriously.”

The official continued: “The good thing is that the money that Namcor paid on behalf of Sequa Petroleum is being paid back. The option was always that they either pay back that money or Namcor would take Sequa’s stake and increase its equity in the oil blocks.”

Salvaging the deal

A government official commented: “Mulunga is getting the flak for authorising that payment, but truth be told, Namcor would not be in this deal today if he had not acted fast and made that payment”.

Namibian Sun understands that there is general consensus within the Namcor board to salvage the deal by approving the repayment of the funds to Sonangol.

Namcor board chairperson Jennifer Comalie yesterday said the company will soon issue a press statement on the status of the transaction.

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Namibian Sun 2024-12-25

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