Foreign-owned companies favoured in Govt tenders – LPM

The Landless People’s Movement has raised concerns in the National Assembly about procurement requirements that allegedly favour well-funded foreign firms over struggling local contractors.

The party says this situation is worsened by requirements such as start-up capital of N$20 million to N$70 million to take part in the tendering process.

Local companies often do not have such capital, it says.

LPM member of parliament Dawid Eigub raised these concerns in the National Assembly last week.

“There is a pattern emerging in the area of state projects where a monopoly is forming. The same small circle of construction companies of foreign origin actively win and gain state projects. This leaves local construction companies begging these few companies for subcontracts,” he said.

Eigub said money, skills and opportunities do not benefit local construction companies.

He believes this has pushed local contractors out of the sector.

Minister of works and transport Veikko Nekundi said he cannot interfere with the procurement system, but promised to discuss the issue with the Roads Contractor Company (RCC) to ensure local companies are prioritised.

He said certain requirements are set up in such a way that while the RCC is waiting for funds, particular contractors can carry on using their own funds so that progress is not affected.

Nekundi called for the need to relook the procurement structure to give ministers more control, as the law currently does not allow him to interfere.

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