The Ministry of Health and Social Services has asked the Central Procurement Board of Namibia to cancel a N$194-million tender to build new central medical stores in Windhoek.
The tender's cancellation comes amid allegations of political interference in the procurement process.
The move also follows concerns allegedly raised by the Switzerland-based Global Fund over the redirection of its N$194-million donation, originally earmarked to build the facility.
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The Namibian last month reported that the ministry halted the tender and opted instead to rent a portion of the former Ramatex Rhino Garments building at Otjomuise for N$100 000 a month.
The ministry, however, ordered the procurement board to cancel the tender this month.
In a letter to the board's executive officer, Idi Itope, dated 16 April, executive director of health and social services Penda Ithindi says there was an executive directive to cancel the tender.
"Based on the request from the ministry's user unit, technical team and in line with an executive directive, the ministry's procurement committee agreed with the recommendation that the Central Procurement Board of Namibia cancel the bid," he wrote.
The ministry said the expected outcome of the project did not justify its cost.
The tender, which closed on 13 January, covered the construction of a proposed new medical stores facility and refurbishment of an existing warehouse in the Khomas region.
Ithindi said the cancellation was done in terms of Section 54 of the Public Procurement Act, which allows for a bidding process to be terminated if it fails to achieve the expected outcome.
The ministry said it would submit a fresh request to the board once revised project specifications and a new proposed location have been finalised.
The cancellation comes despite the Global Fund having already approved Namibia's plan to build new medical stores in Windhoek. The facility was to be built on health ministry premises between the Katutura and Central hospitals.
The construction tender was advertised on 24 October last year and closed on 13 January. A bid evaluation report had already been completed.
Before cancelling the tender, the ministry had considered using the allocation to repurpose the Ramatex Rhino Garments building as a medical store.
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Global Fund spokesperson Ravini Senanaysake says the ministry is best placed to answer questions.
Procurement board spokesperson Johanna Kambala yesterday confirmed that it had received the cancellation request.
"The ministry's request is yet to be tabled before the board for consideration and adjudication," she said.
"The procurement board is not in a position to respond to the questions raised at this stage. Further communication will be provided once the board has deliberated and reached a decision on the matter," Kambala said.
The ministry did not respond to questions by the time of going to print yesterday.
The procurement board last month told The Namibian the bid had complied with legal timelines.
It said the procurement was being conducted in strict adherence to the Public Procurement Act, procurement regulations and the bidding document.
