Ministry denies social grants tender monopoly

The Ministry of Gender Equality, Poverty Eradication and Social Welfare has denied claims that it is driving a monopoly for Epupa Investment Technology in the awarding of a social grants tender.

Epupa Investment Technology has held the tender for over a decade now.

The executive director of gender equality, poverty eradication and social welfare, Martha Mbombo, this week said the current delay in the calling for new bids “is mostly based on research and assessment to ensure that no barriers deter newcomers from participating, and to avoid possible procurement risks”.

Earlier this month, The Namibian reported on players competing in the same space as Epupa voicing concerns that this company has been awarded the same five-year tender for two consecutive terms – in addition to two extensions of one year each – from 2011 to 2022.

The aggrieved parties further lamented the fact that Epupa was granted another extension from January to August this year, after which an additional two-month extension was added.

Concerns were that these extensions bring the Epupa tenure close to November, which is usually the last payment month for social grants, without a bid for new entrants being called out.

Mbombo confirmed that Epupa has held the tender since 2011, having been preceded by PayMaster Services, which held the tender from 1996 to 2006, followed by United Africa Namibia from 2006 to 2010.

“It is essential to note that in each case, these companies fulfilled all the specified requirements and conditions of the tender, and their pricing was deemed fair and reasonable,” Mbombo said.

EXTENSIONS

Mbombo said Epupa was granted extensions for various reasons, such as the finalisation of paypoints, innovative changes and adjustments required for service delivery.

She said the government collaborated with the International Labour Organisation (ILO) in 2014 to conduct a study evaluating Namibia’s social protection floors.

This study, Mbombo said, produced actionable recommendations, which led the ministry to create re-engineering proposals.

“As the full implementation of the proposed new payment method was expected to take at least two years, readvertising the tender at this stage was deemed impractical. Given these circumstances, the ministry decided . . . to extend the current contract by one year,” she said.

The implementation of the proposed re-engineering process was, however, found to be costly.

As such, the ministry resolved to call for a new bid in 2016.

NEW PAYMENT METHODS

Mbombo said a further extension was requested this year to address the payment delivery systems to be incorporated into the new bid documents.

“The need arose to investigate alternative payment methods, while ensuring that the grant reaches the intended beneficiaries,” the ministry said.

Considering this, the ministry evaluated various payment alternatives, including ATM-like services, cardless transactions through banks, and partnerships with retailers like Shoprite/Checkers, Pick n Pay, PEP, Village stores, and vendor outlets.

Mbombo said the ministry additionally explored the feasibility of providing cash payments to pensioners or beneficiaries, allowing them the option of making partial withdrawals from their grants, the aim of which was to enable beneficiaries to make up to three partial withdrawals in a single month without incurring any additional costs.

“The new elements resulted in a paradigm shift to the original bid document,” Mbombo said.

Earlier this month, Epupa’s managing director, Shalli Ben-Elungu, said: “I do not know if those complaining are at pains [sic] with Epupa, the government or with the way tenders are awarded in the country, but their motives are questionable. I do not have any influence over the government’s procurement process, nor do any of my directors.”

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