August 26: Refutes Job Amupanda's Fuel Procurement Claims in Namibia

• August 26 denied claims by Job Amupanda regarding fuel procurement from Sunrise CC for the Ministry of Defence and Veteran Affairs.
• The company facilitates fuel supply to military bases by bridging payment gaps between suppliers and the government, operating without a separate written contract.
• August 26 will conduct an independent investigation into its procurement processes and supplier links, underscoring its commitment to robust internal controls.
• The company adheres to annual audits, has received unqualified opinions since 2024, and complies with the Financial Intelligence Act 2012.
• Higher fuel prices reported (N$36/litre) refer to unregulated Jet A-1 fuel, not the regulated petrol and diesel supplied to military bases.

The company has pledged to initiate an independent investigation. This probe will thoroughly examine its procurement processes and any potential connections between suppliers and its directors or staff, underscoring a commitment to robust internal controls.

The state-owned enterprise August 26 recently addressed significant public concerns in Namibia following claims made by Affirmative Repositioning leader Job Amupanda regarding its fuel supply arrangements with the Ministry of Defence and Veteran Affairs. Acting CEO David Brown, speaking from Windhoek, firmly stated that August 26 possesses no records indicating any fuel procurement from a company named Sunrise CC. This direct refutation comes amidst heightened scrutiny over public procurement practices within Namibia.

Brown emphasized the company's commitment to transparency, acknowledging that the utilization of public resources is a legitimate area of public interest. He welcomed the opportunity to present the factual circumstances to the public, directly confronting the August 26 Amupanda fuel claims Namibia has been discussing. The company's proactive stance aims to clarify its operational procedures and financial dealings in light of the August 26 fuel procurement allegations.

August 26's involvement in supplying fuel to military bases stems from a 2024 request by the Ministry of Defence and Veterans Affairs. This arrangement is designed to bridge a critical financial gap: while fuel suppliers typically demand immediate payment upon delivery, government entities operate on a longer administrative payment cycle, often taking between 30 and 120 days. August 26 facilitates this by purchasing fuel from approved suppliers, paying them upfront, and then invoicing the ministry. This means the company carries the burden of bridging finance, administrative overhead, and the inherent risk of delayed payments.

Crucially, this operational framework does not involve a separate written supply contract but rather functions based on the ministry's direct request. Brown also clarified that a previous exclusive fuel supply agreement held by Enercon, a company in which August 26 held a 25% shareholding, was not transferred or awarded to August 26. Enercon's contract, which included supplying fuel and upgrading facilities for the ministry, was terminated due to a breach, leading to its court-ordered liquidation and the appointment of a liquidator, impacting the broader context of Enercon liquidation Namibia. An isolated incident involving a truck leased from Botswana for an emergency fuel delivery, necessitated by a temporary lack of local transport capacity, was also addressed, with assurances that it has not been repeated.

In response to the August 26 fuel procurement allegations, the company has pledged to initiate an independent investigation. This probe will thoroughly examine its procurement processes and any potential connections between suppliers and its directors or staff, underscoring a commitment to robust internal controls. August 26 operates under stringent financial oversight, undergoing annual audits by Saunderson & Co, and has consistently received unqualified audit opinions since 2024. These opinions confirm that the company's financial statements accurately represent its financial position without material misstatements, with fuel transactions forming an integral part of these audited records.

Furthermore, August 26 adheres strictly to national financial regulations, including filing its taxes with the Namibia Revenue Authority. Its banking operations are fully compliant with anti-money laundering requirements as stipulated by the Financial Intelligence Act 2012 August 26. The company's financial records unequivocally demonstrate no payments made to any political party or campaign. To further foster trust and address Namibia public procurement scrutiny, August 26 maintains an open-door policy, inviting Members of Parliament and other stakeholders to visit its facilities, inspect its operations, and, by appointment, review its audited financial statements.

A key point of contention in the public discourse revolved around fuel pricing, with reports citing figures of N$36 per litre and above. August 26 clarified that these higher prices pertain exclusively to Jet A-1 fuel, which is distinct from the diesel or petrol supplied to military bases. Jet A-1, used for jet and turbine-powered aircraft, is not subject to price regulation; its cost is determined by market conditions. The price of Jet A-1 saw significant increases during regional shortages in April and May 2026, and again in August and September 2026.

The market for Jet A-1 in Namibia is characterized by a limited number of suppliers, and unlike petrol and diesel, it incurs a 15% Value Added Tax (VAT). Regarding petrol and diesel, August 26's management has actively reviewed pricing since June 2024, aligning it with regulated pump prices and incorporating the applicable inland transport differential. The company is continuously exploring further reductions and savings for the Ministry of Defence as operational efficiencies improve, demonstrating ongoing efforts to optimize costs amidst public and government scrutiny.

This case highlights the intense scrutiny faced by state-owned entities in Namibia regarding public procurement and financial transparency. Legal and compliance professionals should advise clients on robust internal controls, adherence to the Financial Intelligence Act 2012, and proactive communication strategies when facing public allegations concerning government contracts.

Source: Original reporting via Namibian Sun