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25.08.2010

Chinese tenders slammed

By: DENVER KISTING

THE Namibian Government should invest more in local SMEs instead of awarding tenders to the Chinese who are strong because their government throws all its weight behind them. So said a participant yesterday at a two-day conference in Windhoek which focuses on the challenges facing workers in the Namibian construction industry. Ministry of Works and Transport Deputy Director: Architectural Services, Mwiitumwa Mungandi, agreed.

But, he said, this obstacle was the result of rules and regulations “that have been in place for a very long time and nobody wants to change them”.
This came after the participant said: “I have a problem with our Government’s lack of support. We are running to the Chinese people, because they have the support from their government and we are ignoring our people.”
According to Martin Nambata, Chief Control Officer: Administration Services in the same ministry, “the money [to provide support] is there, but is not a smooth surface”.
Another hurdle which local SMEs need to overcome relates to complying with all the Tender Board requirements, Nambata said.
Compared to the Chinese tenderers, Namibians do not always familiarise themselves with the requirements and, as a result, fall short with compliance. He said: “They (the Chinese) have everything.”
Mungandi echoed Nambata’s sentiments, saying that local “emerging contractors” apparently do not read the contracts that they enter into properly.
As a result, they have difficulty in administering such agreements, especially as far as penalty clauses and claims are concerned.
Apart from this, local ‘tenderpreneurs’ lack knowledge in performance guarantee insurances as well as technical knowledge, he charged.
He said that he often encourages Chinese contractors to make public “the good work” they do, because “at the moment they are being beaten left, right and centre and they are not doing anything [about it]”.
Mungandi said that the Namibian Government is busy with a number of initiatives to help address the concerns of local SMEs, one of which is the National Planning and Construction Council – a body to be established soon to regulate the industry.


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