NEWS - NAMIBIA | 2013-07-24Nahas Angula
NDF creates another middleman
Shinovene Immanuel
AFTER recalling and allocating the controversial N$1,5 billion food tender, the Ministry of Defence has contradicted itself by establishing a logistic company that will act as a “middleman”.
The new company called August 26 Logistics will be under the umbrella of August 26 Holdings a company wholly-owned by the Ministry of Defence.
Minister of Defence Nahas Angula yesterday said in a statement that “in terms of affordability, it has become clear that the supply and delivery of rations to various NDF bases through a middleman is costly and unreliable.”
He added that having a middleman in a tender was “a compromise to the principle of secure supply and delivery at all times including during disasters”.
Angula also said that he has no problem with his top generals doing business with his ministry.
Prior to the withdrawal of the food tender, the Confidente weekly newspaper carried two reports stating that high-ranking officials in the defence ministry tampered with the tender system to favour their relatives and friends.
Despite the withdrawal and re-allocation of the food tender, independent sources are of the opinion that nothing has changed in terms of getting rid of the middleman and rooting out corruption.
The Namibian can reveal that there are several high-ranking officials who are tipped to rake in benefits from the controversial tender through the new supply company.
The current system is that the manufacturer supplies the tendering company which delivers the goods to the defence force.
The new system that is to be implemented in two months is that manufacturers supply August 26 Logistics which delivers to August 26 Holdings and this company then supplies the defence force.
That means the process now has more players in the supply chain than before.
Sources say the new system is likely to benefit a group of well-connected high-ranking officers who are known to The Namibian. The elite group is said to be set to rake in millions of dollars through orders from the new supply company.
The logistic company will be responsible in determining which companies will supply food to the ministry. Those in the know say procurement procedures might be botched in order to hand-pick favourite companies.
Angula said the current suppliers of rations to NDF military bases will continue doing so until 30 September 2013.
Asked to clarify his statement, Angula insisted yesterday that they want to cut out the middleman and August 26 is not a middleman company in the supply process as it is only a holding company. The new logistic company will have a management team, workers and will be outsourcing most of its work.
Asked whether the decision to give August 26 Holdings the N$1,5 billion tender had the Cabinet’s blessing, Angula said the tender did not need Cabinet approval as it was a ministerial business decision.
Question marks have been raised on the expertise August 26 has in order to undertake a billion dollar tender.
Angula said the company is preparing itself and getting necessary equipment for the work required. Due to the lack of expertise, Angula admitted they might invite partners in order to collaborate.
“I believe they can do it [job], it will also not be a problem if they can work with other technical partners to work together,” he said. He said long term plans include using the ministry owned farms in the country to produce food that will then be supplied to the army.
Asked about complaints that generals are alleged to be having a hand in the tenders, Angula said there was no problem as long as company policies are followed.
“If one of the generals has a 10 cattle and wants to sell them to us then that is a business deal. We don’t have a problem with that”.
Angula also said that the decision to give the tender to the ministry was also aimed at encouraging the use of locally produced food.
According to his statement, reliability and self-sustainability in the supply and delivery of rations to all NDF establishments can only be achieved by the ministry through its wholly-owned August 26 Logistics.
Angula said the new company’s goal was to supply and deliver quality rations on a sustainable and reliable basis with the aim of offering the same services to the government as a whole in the long run.
According to a news report in the weekly newspaper, several ‘briefcase companies’ were established a few months before they were awarded the largest chunk of the three year multi-million-dollar food tender for military bases across the country.
At the beginning of this year, The Namibian reported that a N$2 million tender for the supply of champagne glasses and garden tools for the Ministry of Defence raised suspicion of favouritism after it was classified ‘urgent’ and of a ‘security’ concern, requiring it to be exempted from the government’s open bidding tender process.
Minister of Defence Nahas Angula yesterday said in a statement that “in terms of affordability, it has become clear that the supply and delivery of rations to various NDF bases through a middleman is costly and unreliable.”
He added that having a middleman in a tender was “a compromise to the principle of secure supply and delivery at all times including during disasters”.
Angula also said that he has no problem with his top generals doing business with his ministry.
Prior to the withdrawal of the food tender, the Confidente weekly newspaper carried two reports stating that high-ranking officials in the defence ministry tampered with the tender system to favour their relatives and friends.
Despite the withdrawal and re-allocation of the food tender, independent sources are of the opinion that nothing has changed in terms of getting rid of the middleman and rooting out corruption.
The Namibian can reveal that there are several high-ranking officials who are tipped to rake in benefits from the controversial tender through the new supply company.
The current system is that the manufacturer supplies the tendering company which delivers the goods to the defence force.
The new system that is to be implemented in two months is that manufacturers supply August 26 Logistics which delivers to August 26 Holdings and this company then supplies the defence force.
That means the process now has more players in the supply chain than before.
Sources say the new system is likely to benefit a group of well-connected high-ranking officers who are known to The Namibian. The elite group is said to be set to rake in millions of dollars through orders from the new supply company.
The logistic company will be responsible in determining which companies will supply food to the ministry. Those in the know say procurement procedures might be botched in order to hand-pick favourite companies.
Angula said the current suppliers of rations to NDF military bases will continue doing so until 30 September 2013.
Asked to clarify his statement, Angula insisted yesterday that they want to cut out the middleman and August 26 is not a middleman company in the supply process as it is only a holding company. The new logistic company will have a management team, workers and will be outsourcing most of its work.
Asked whether the decision to give August 26 Holdings the N$1,5 billion tender had the Cabinet’s blessing, Angula said the tender did not need Cabinet approval as it was a ministerial business decision.
Question marks have been raised on the expertise August 26 has in order to undertake a billion dollar tender.
Angula said the company is preparing itself and getting necessary equipment for the work required. Due to the lack of expertise, Angula admitted they might invite partners in order to collaborate.
“I believe they can do it [job], it will also not be a problem if they can work with other technical partners to work together,” he said. He said long term plans include using the ministry owned farms in the country to produce food that will then be supplied to the army.
Asked about complaints that generals are alleged to be having a hand in the tenders, Angula said there was no problem as long as company policies are followed.
“If one of the generals has a 10 cattle and wants to sell them to us then that is a business deal. We don’t have a problem with that”.
Angula also said that the decision to give the tender to the ministry was also aimed at encouraging the use of locally produced food.
According to his statement, reliability and self-sustainability in the supply and delivery of rations to all NDF establishments can only be achieved by the ministry through its wholly-owned August 26 Logistics.
Angula said the new company’s goal was to supply and deliver quality rations on a sustainable and reliable basis with the aim of offering the same services to the government as a whole in the long run.
According to a news report in the weekly newspaper, several ‘briefcase companies’ were established a few months before they were awarded the largest chunk of the three year multi-million-dollar food tender for military bases across the country.
At the beginning of this year, The Namibian reported that a N$2 million tender for the supply of champagne glasses and garden tools for the Ministry of Defence raised suspicion of favouritism after it was classified ‘urgent’ and of a ‘security’ concern, requiring it to be exempted from the government’s open bidding tender process.
