A forensic investigation triggered by an irregular N$40,000 transaction has led to a major ruling by the High Court, confirming that four former employees of the Northern Electricity Distributor (Nored) defrauded the company of over N$2.6 million between 2013 and 2015.
Delivering judgment last week, Judge Eileen Rakow found that the employees systematically exploited weaknesses in Nored’s electricity top-up system. The court established that they manipulated vendor accounts, issued unauthorised electricity credits, deleted legitimate payment receipts, and collected cash from vendors without remitting it to the company.
Central Role in Coordinated Scheme
The court identified Ndahambelela Nelumbu, a former debtors’ accountant, as the key orchestrator of the fraudulent activity. Nelumbu collaborated with fellow employees Josephat Negumbo, Sieglinde Diriardi, and Cecilia Johannes to manipulate Nored’s internal Evolution ERP system for personal gain.
Judge Rakow found that the four acted in concert, stating:
“All the transactions involving the picking up of money and the subsequent loading of electricity and the generating of a receipt that is backdated or deleted had at least two persons operating, except where the first defendant picked up the money herself.”
The judgment revealed that Nelumbu, Diriardi (a cashier based in Rundu), and Johannes conspired to remove or backdate receipts after vendors had paid for electricity top-ups. These actions allowed them to pocket the payments without alerting the system. Negumbo, a former revenue controller, was also implicated in issuing credits based on fictitious or unverified payments, including a fake N$40,000 receipt.
Court Dismisses Defence Claims
The defence argued that the losses stemmed from poor internal controls, password sharing, and general mismanagement. However, the court rejected these explanations, ruling that the accused willfully violated company policy and breached their fiduciary duties.
Judge Rakow clarified that while the doctrine of common purpose was not invoked, the employees acted with shared intent to defraud Nored, resulting in significant financial damage.
Repayment Orders and Legal Costs
The court ordered each of the four former employees to repay specific amounts based on their level of involvement:
- Ndahambelela Nelumbu: N$853,920.40
- Josephat Negumbo, Sieglinde Diriardi, and Cecilia Johannes: Jointly liable with Nelumbu for a portion of the losses
Additionally, all four were instructed to cover Nored’s legal costs.
The judgment brings closure to a case that began in August 2015, when internal auditors launched an investigation into suspicious vendor transactions. The audit traced the deleted and backdated receipts to the personal login credentials of the accused employees, confirming their direct involvement.
