The Roads Authority (RA) is accused of creating an artificial emergency to award Otesa Civil Engineering a road contract worth N$10 million.
The contract for the Okatana-Epyeshona-Amutanga road covers a distance of 6,8km in the Oshana region.
Documents obtained by The Namibian confirm that the tender was awarded on an emergency basis.
"You have been appointed for the emergency construction of proclaimed road DR4103 from Okatana-Epyeshona-Amutanga (phase 1).
"The above-mentioned work is for a total amount of N$10 460 889 for a period of four months as from 1 April 2024 to July 2024," RA chief executive Conrad Lutombi said in a letter dated 8 March, which was sent to Otesa Civil Engineering.
RA spokesperson Hileni Fillemon last week confirmed that the direct procurement was carried out due to the rainy season.
However, this claim is questioned by local companies, as Namibia has experienced severe drought conditions, also in the northern regions.
In 2019, the drought was particularly devastating, marking one of the worst in over 90 years.
The RA insists that the claim is valid.
"Regarding the Epyenene-Amutanga road, this was an emergency procurement to ensure access is provided to the communities in that area (especially schoolgoing children) before the next rainy season. "This was done within the provisions of the Public Procurement Act of 2015," Fillemon said.
Local businesses allege this practice unfairly favours Otesa Civil Engineering, bypassing competitive bidding processes.
While some contractors have questioned the transparency and fairness of direct appointments, the RA maintains that these decisions were made in the best interests of the country and to ensure timely project completion.
The authority last week told The Namibian that the direct appointment of Otesa Civil Engineering for the Windhoek-Okahandja road upgrade was approved by its board of directors in December 2016.
Fillemon said this was to expedite the completion of the project within the recommended time frame.
"All similar capital projects, such as phase one of the Windhoek-Hosea Kutako International Airport road upgrade to freeway standards, and Swakopmund-Walvis Bay road upgrade to freeway standards, were accorded the same treatment, and the contractors' work was extended via direct appointments," he said.
Otesa Civil Engineering spokesperson Uejaa Kazondunge last week said their company does not determine procurement methods or classifications, as per the Public Procurement Act 15 of 2015.
"That process is managed by the Roads Authority, the mandated institution as per the law. Our responsibility as a contractor is to provide competitive supply as per the objectives of the Public Procurement Act 15 of 2015. We refer you to the Roads Authority," she said.
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Otesa Civil Engineering is a company of interest.
The Namibian last week reported that the RA is accused of committing the government to a N$1-billion tender for the construction of the Opuwo-Epupa road project without approval from the Ministry of Finance and Public Enterprises and the Ministry of Works and Transport.
The tender allegedly favours Otesa Civil Engineering, bidders of the tender claimed, pointing to the N$90-million guaranteed amount needed for the project.
The RA advertised the tender this year - expected to close on 10 October - to upgrade the 75km gravel road from Opuwo to Epupa.
The project, which starts from the town of Opuwo to Otjivize village, has attracted complaints from Namibian bidders who claimed the tender has not been approved by the finance and transport ministries.
