TENDERPRENEUR businessman Vaino Nghipondoka and his company Babyface Civils emerged as the preferred bidders in the controversial tender for the construction of a second office block for the Office of the Prime Minister.
Tender board documents seen by paint a picture of a tender process characterised by irregularities.
Despite there being allegations that Ministry of Works and Transport officials favoured Babyface Civils, even while the company failed to meet tender requirements, the ministry still managed to award the tender.
Nghipondoka’s Babyface Civils is in a joint venture with Chinese firm China Jiangxi International.
Documents from the tender board indicate that the works ministry changed the tender specification to benefit Nghipondoka and his JV.
Works permanent secretary Willem Goeieman referred questions to the tender board, stating that his ministry only makes recommendations.
He, however, added that he has not yet been briefed on the tender’s development.
Last Thursday’s tender board meeting decided to endorse a ministry of works’ recommendation that the tender be awarded to Nghipondoka’s JV, despite changing the tender specifications to reduce the cost of building.
Nghipondoka yesterday said that he was not aware of the tender award since they have not been furnished with a letter of award from government.
The price was reduced from N$1,1 billion to N$850 million, without following procedures or giving other bidders a chance to alter their bids to accommodate the new specifications.
Due to the high cost of the project and lack of funding, the works ministry decided to modify the specifications to allow for savings on the project.
Some of the changes were to reduce the number of lifts in the building, kitchen equipment, cold storage facilities, fire detection and protection equipment, air conditioning, smoke control and some of the mechanical and electrical finishing components to the building.
They also decided to completely do away with things like the gym and auditorium to effect the savings.
The savings have been effected to reduce the total cost of what the Office of the Prime Minister can afford in terms of their budget.
The Tender Board also directed the Prime Minister’s office to consult treasury for money to fund the project, despite agreeing on appointing a contractor for the project.
A tender board source also pointed out that a JV between China Jiangsu and Oshipe Construction was disqualified because their bid of N$968 million was seen as too low, but they were not given a chance when the cost of the project was reduced.
Other bidders were New Era Investment JV with Octagon Construction, who bid N$1,04 billion; Namibia Construction, who bid N$1,03 billion; and Jiangsu Zhengtai JV with Trans Afrique Trading Enterprises, who put in a bid of N$1,01 billion.
Tender board documents show that concerns have been raised by its members because other bidders were disadvantaged.
Tender board members were also concerned about whether the ministry of works’ move to reduce costs and award a tender in such a manner is in accordance with the Tender Board Act of 1996.
The Namibian has learned that other companies in the running for the project have not been given a chance to alter their bids to make provision for the new and revised specifications, as should be the procedure in the event that the client decided to make wholesome changes to the project.
Tender board sources also said that a legal battle is brewing since the losing bidders feel unfairly treated by government.
The controversial tender has been sent back and forth between the works ministry and the Tender Board of Namibia since May, with claims of political influence in the tender process.
It has also been reported that the tender board has been divided on whether the adjudication process was done impartially.
Office of the Prime Minister permanent secretary Nangula Mbako did not respond to text messages at the time of going to print, while Tender Board chairperson Ericah Shafudah did not respond to calls to her mobile phone yesterday.
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