Namibia: N$62 Million Railway Tender Challenged

Profile Investments, the company which was initially recommended for a controversial N$62 million railway tender but was ultimately unsuccessful, is challenging the decision, claiming that the Ministry of Works and Transport leaked their information to their rival.

Veino Nghipondoka, owner of Profile Investments, filed a lawsuit in the High Court on Tuesday against Ericah Shafudah, the Tender Board chairperson, and Works and Transport Minister Erkki Nghimtina.

The third and fourth respondents are Oshana Wholesalers Close Corporation and Voestalpine-Vae SA.

Profile Investments is alleging that an official in the Ministry of Works leaked confidential information to their competitor.

Nghipondoka’s Profile Investments formed a joint venture with a South African company called Voestalpine-Vae SA. The joint venture is known as Profile-Vae.

The tender was for the upgrading of Aus-LĂŒderitz railway line. The successful bidder had to procure and deliver rails.

The company said in the papers that Ministry of Works Undersecretary Phillip Amunyela was advancing the interest of Oshana Wholesalers, one of the bidders.

He said Amunyela provided Oshana Wholesalers with Profile-Vae’s confidential information on the tender. This was allegedly done after the tender had closed.

The transport ministry in November last year initially recommended to the Tender Board that Profile-Vae joint venture be awarded the N$62 million job. However, it made a U-turn a few weeks later after it reportedly discovered irregularities during the procurement process, one of them relating to a conflict of interests. Nghipondoka said the ministry made sure that the tender was cancelled.

He said “the ministry searched for other grounds to terminative the tender, from the trivial and irrelevant (the wrong stationery being used by its own consultant ) to patently inaccurate and baseless (conflict of interest on the part of its consultants).”

The tender was cancelled in January this year after it was recalled in December last year.

Namibia Railway

Source : All Africa

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